Trucking industry suffers as fewer goods hit the road - South Florida Business Journal:

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With consumer demand down, the reports that its truckl tonnage index, a gaug e of freight movement, has been droppinvg since September. The losses were less than 2 percentr from Septemberthrough November, but the indecx fell 14 percent in Decemberd and the following two months were down 10.8 percent and 9.2 The fallout is hitting Carlozs Duenas, owner of in Duenas, who primarily moves containerizedf cargo to and from Port Everglades and the Port of said his business started falling this January, slidint about 20 percent. MVC is now hauling about 250 to 260 containersa week, down from more than 300.
As demancd has slowed, Duenas also has felt pressurew to lower his rates about20 Fortunately, he owns all of his 26 truck s and isn’t laden with debt. “This is goinvg to be a year that only the fittest will he predicted. Among the trucking businesseas hardest hit by the recession are thosed tiedto construction. With the slowdown in real there is little need for the truckes that provide ancillary saidMatthew Ubben, a spokesman for the . “It’s anemic at the he said.
The South Floridqa trucking industry in general may bouncee back more quickly because of the diversity of good s moving throughthe region, said Edward Mierzejewski, a transportationh economist and director of the at the in Tampa. “Tio the extent that you’ve got a broad range of things moving throughthe port, you’rse less vulnerable to the kind of peakiny in the market that comes with construction-related materials,” he said. A diversifiedr business model is helping Merchant Transport GM JohnDewhurst said. The company, which operates from West Palm hauls special loads for industrial andconstruction uses.
It also gets revenues from related businesses, like renting the cranes it Merchant Transport haulsheavy equipment, industriap machines and works for utility companies. Merchant has seen a drop of abourt 20 percent over the lasttwo years, Dewhurst And, it has so far been able to avoid layoff among its 34 employees, though that hasn’t been easy with hauling rates dropping “approximately 10 percent acrosss the board,” Dewhurst said. David president of , a family business in Palm Citynear Stuart, also has watcheds his business drop about 20 The slide started last July or August, he said.
Sincr then, the company has had to make some though Armellini declined togive specifics. The company has about 200 people on staff and owns aboutf130 trucks, he said. Most of Armellini’sx trucking involves moving flowersfrom , but the companyy is now trying to diversify by hauling more About 30 percent of the business involves hauling othed consumables, he said. The company has had to drop Armellini acknowledged, though he declined to be specificabouf that, as well. “We’re having to make the cuts like everyone else to remaih astrong company.
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