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John’s Blog 8-18-09
Dear Friends,
With the exception of a small spike today from a tropical storm that could become a hurricane, the price of oil continues to drop. This coupled with the news that a bumper crop is in the ground which would lower the costs of food products bodes well for the US economy.
Inflation has been what the Fed has feared and the signs are positive.
According to Transport Topics, it is too late though for approximately 970 trucking companies that went out of business in the first half of the year. These company failures took over 88,000 trucks off of the roads and amount to a 4.5% drop in trucking capacity.
Jevic, Alvin, and Jim Palmer are some of the bigger names that have left the market. Most companies that are gone were smaller trucking companies that operated fleets of 50 trucks or less.
It is widely believed that worst is behind the industry and that capacity is in alignment with the existing demand. With diesel down to $4.35 a gallon today it would appear that those remaining carriers have a fighting chance.
At Wagner we have a great stable of carriers available to us that we use in meeting client transportation challenges.
In addition we have a solid network of distribution centers so please let me know if you have any upcoming projects that we may work with you on.
Have a great week!
Best regards,
John Wagner Jr
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John's Blog 
