The Trucking Industry In Iowa Is Enjoying Reduced Cost Of Fuel
Trucking companies in Iowa have reported that business is still facing challenges, but things are not as bad as before.
Fuel prices have been falling to the lowest levels in 11 years.
This is attributed to more oil production in the U.S. coupled with a decrease in consumer demand.
Prices now hover around $36 a barrel. In a statement made to the Waterloo-Ceder Falls Courier.
The trucking industry representatives said that the lower crude prices helped lower costs, but they have affected the fracking business that was robust just several years before.
Bob Costello is a native of Waterloo and is the chief economist at the American Trucking Associations based in Arlington, Virginia. He said that the industry is still suffering from a shortage of truck drivers.
Even though business has slowed somewhat, the industry still needs around 48,000 more drivers for the trucking jobs in Iowa, than what it has right now. http://realtruckdriver.com/best-trucking-companies-to-work-for-truck-driving-salary
He said that when a trucking company can save money on fuel, it will try to use the money saved to increase the salary of the existing truck drivers as an incentive for them to stay with the company.
When there are not enough drivers, the current drivers for Iowa trucking jobs can command a higher pay.
Dick Donnelly, who is the CEO of a trucking company in Waterloo called Warren Transport, said that shipping charges and costs have lowered a lot because the cost of each gallon of fuel has gone down.
That helped in lowering surcharges on deliveries, and that has a positive effect overall.
According to Donnelly, one of the trucking industry’s major challenges is a declining farm economy that has impacted the volume of deliveries in farm products.
His company deals with owner-operators who are independent.
He intends to face this challenge by exploring options in diversifying into other types of deliveries.
Freight and personal transportation contributes more than 10 percent to the U.S. economy. It plays a key role in our society.
The decision makers of the transportation companies have a big responsibility in maintaining the health of this important industry.