I’m writing this article on May 16, 2024, which just happens to be NASTC’s 35th birthday.

Someday I’ll try to recapture the highs and lows of the past 3 ½ decades, but as I told Buster Anderson, my founding partner during those early years: “Keep the faith. Keep coming to work. We’re losing less money each month. This is going to work.”

It took us almost six years to begin showing a profit, but for all of the 35 years of NASTC’s existence we’ve been a “positive growth” company. One that grows by 20% or more each calendar year.

That is, until 2023.

NASTC started 2023 with approximately 15,200 companies and ended the year with approximately 14,300 – a net loss of 900 companies, despite adding 1600 new companies. So, we had over 2500 companies decide to retire early, get out of trucking, sell out, or close their doors. I don’t have to tell you that the past 18 months have been devastatingly difficult and, in many cases, impossible. Let’s look at some of the reasons for this across-the-board downturn.

– Following COVID and business closures, inventories were depleted and there was a great DEMAND for capacity. Rates went through the roof and carriers were in the driver’s seat. Four, five and six dollars per mile were not uncommon. This lasted for about one year during which
time most carriers added trucks and drivers and more and more fence sitters decided to get their own authorities to run long-haul, irregular route, full-truckload companies.

– Once business began to normalize, so did rates and with excess capacity (more available trucks and drivers), rates went down, and shippers and brokers were then in the driver’s seat with excess capacity (SUPPLY).

– Beyond returning to normal, our economy slowed, interest rates increased, and inflation once again moved upward. The cost per mile for running a truck rose sharply.

– With more and more people compensated not to work the driver pool began to shrink and competition for drivers increased dramatically actually creating a self-fulfilling prophesy – a true driver shortage.

– On top of all this, the seemingly constant attack on the owner/operator model and the fossil fuel industry as a whole has discouraged people to enter or remain in this segment of trucking.

– Politically, nothing that the current administration has done or not done would indicate that the powers inside the beltway in D.C. are pro-business. On the contrary, they take every opportunity to spend more, tax more, regulate more and are not only not pro-business but anti-business and pro-union.

I believe that our country will begin to heal itself during the second half of 2024 and in so doing our industry will once again grow and prosper. Until then, as I told Buster 35 year ago:

“Keep the faith.
Keep coming to work.
This thing is going to work!”