I have worked in the trucking industry in one fashion or another for over a decade now. Since the rescission began the entire industry has taken a huge blow and thousands of companies have gone under. The company I work for is struggling big-time and my job security is non existent. The industry is riddled with many problems the biggest (imo) are freight brokers which are middlemen whose services really are not necessarily (I have been a freight broker) yet they take most of the profit before a truck ever loads the product.
Now the government may greatly compound the problem with Senate Bill S-1813. This bill will require freight brokers to carry a $100K surety bond, currently only a $10k bond is required. Now you may be asking why this would be a bad thing, I feel brokers are strangling the industry after all. A majority of loads (70%+) are set up using freight brokers. In the brokering industry most are small time businesses made up of a few people at most but like in any industry you also have your big boys. In my pretty extensive experience it is the small guys who take less of the money leaving more to go toward the trucking company. It is the big giants that take every last dime possible and will leave many loads paying less then it actually takes to haul them. (if you wonder why or how a truck company would haul a load for a loss just ask me).
As a result of S-1813 an estimated 75% of brokers will be pushed out of business. Who is this 75% going to be? It will be all the little brokers that cannot afford that $100K surety bond which will only leave the giant companies who leave nothing for the truck. I believe this will result in many more truck companies and owner operators going under. The trucking industry is one of Americas most important services, without it the entire US economy would grind to a halt in a matter of days/weeks so why dont we take better care of it?
Does anyone else here work in the industry (or not) that would like to give me your thoughts?