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Thursday, December 8, 2022

Driver Shortage? 2,500 ready to work drivers unemployed

The trucking industry’s strength is wavering as this year alone 2,500 drivers have lost their jobs.

Spot market rates have dropped 18% year over year in June. Such a decrease in the spot market played a significant role in drivers’ unemployment.

Furthermore, in 2019 several big trucking companies like New England Motor Freight, have filed for bankruptcy causing job loss in mass quantities.

Starlite Trucking, a 40-year-old trucking company also filed for bankruptcy this year.

At its peak, Starlite had a wide assortment of offerings with 75 employees and 52 trucks. The company offered hoppers, flatbed trailers, refrigerated services, and other equipment.

Increased costs for labour and equipment, along with flat-lined hauling rates, proved too deep of a cut into Starlite’s profits for them to stay in business.

“We tried to provide a healthy work environment for our employees and give them the best wages and benefits we could,” Starlite Trucking CEO Colby Bell said in a statement about the closure. “But in the end, the rates that were available did not support the cost structure needed to compensate our employees appropriately.”