The trucking industry is suffering the aches and pains of this disastrous economy along with the rest of the country: loads are down while fuel prices remain relatively high. According to the U.S Department of Transportation Statistics, the Freight Transportation Services Index has declined a whopping 14.8 percent in the last 11 months alone. Although this number includes all means of freight transport, we can be assured that the trucking industry is hardest hit since it accounts for a full 70 percent of all shipping traffic in this country.

How does a trucking company survive over the long term in this kind of toxic environment? The answers to this question are hardly simple ones, and it’s impossible to cover them all in one blog posting. However, companies have to start somewhere. Here are 3 very basic areas where cost-reduction measures can be implemented: right here, right now.

1. Phase Out Unproductive Drivers Quickly

You must set even more aggressive performance goals in order to separate the productive from the unproductive drivers in your employ. There is hardly a shortage of qualified drivers in the industry at the moment, and so setting higher standards simply makes good sense. Higher productivity in drivers can be helped by more effective scheduling of dispatches, load allocation, etc. But if there are bad apples in your barrel, they should be phased out: right here, right now.

2. Use Your Fleet Wisely

You know that a truck nearing the end of its life will not be as fuel-efficient as a newer model; take the time to assess your fleet and put your best-mileage vehicles on longer monthly runs and reserve your older vehicles for shorter jobs. Because newer trucks have less chance of breaking down, they should be the ones to use for night runs to keep costs lower. Set clear boundaries for idle times as well as for MPH limits to save fuel, and put more trucks on the road in the early morning hours for city jobs so they won’t be stuck in traffic. You can make wise changes that will maximize the utility of your fleet while reducing costs: right here, right now.

3. Reassess Your Trucker Insurance

If it’s been a long time since you’ve carefully reviewed your current trucker insurance plan, now is the time to see if you can’t get a better deal elsewhere. A large trucker insurance brokerage such as Hub Transportation uses its vast network of contacts to get its clients the best packages at the lowest possible prices. Making this one simple change could make a real difference to your bottom line: right here, right now.

This is just a thumbnail sketch of the many changes that trucking companies and owner/operators alike can make to help them weather the current economic storm and come out OK on the other side.

The 2009 credit crisis has affected all types of industries across the nation, including the trucking industry. Its devastating effects have reached thousands of suppliers, forcing many business owners to freeze production and shut down, thereby eliminating the need to ship goods or products on trucks.

The actual tonnage hauled by large fleets of trucks is falling, meaning that there are fewer truck shipments. In March 2009, the Truck Tonnage Index fell 4.5%, and then again another 2.2% in April 2009. This is the lowest it’s been since 2001. Not only is the trucking industry getting hit hard by the recession, but it’s getting hit with the massive inventory correction that suppliers are undergoing.

ATA Chief Economist Bob Costello recently said, “While most key economic indictors are decreasing at a slower rate, the year-over-year contractions in truck tonnage accelerated because businesses are right-sizing their inventories, which means fewer truck shipments.” Sales have dramatically decreased, ultimately causing truck shipments to suffer.

The Jim Palmer Trucking Industry narrowly escaped bankruptcy in May 2009. The company had to file for Chapter 11 Bankruptcy in July 2008 due to average fuel costs skyrocketing up to 12% over the last year. Fuel costs forced the trucking company to become delinquent on $1.5 to $2 million dollars in equipment loans and other debt. Fortunately, the bankruptcy judge approved a reorganization plan and allowed the company to escape bankruptcy.

Thankfully, fuel costs have gone down since July 2008. Back then, diesel prices skyrocketed to around $5 a gallon. Now, they are around $2.19 a gallon.

Some say that if you’re looking for signs of economic recovery then just look at how many trucks are on the road. From lumber to food, furniture to detergent, large trucks are the backbone of America. Trucks carry almost all the manufactured goods and retail products in the nation. After the economy picks up and supply is aligned with demand again, then the trucking industry will finally be able to grow again and increase their prices.

An economist with the American Trucking Associations, Mr. Tavio Headley, believes that the economy will soon show signs of improvement and that the trucking industry will pick up as early as next quarter.

Trucking companies who have not been affected by such hard, trying circumstances have either restructured their current trucking insurance or have acquired new, more affordable trucking insurance from Hub Transportation. Hub Transportation continues to see positive growth in the insurance industry as truck owners turn to them for the most affordable trucking insurance rates around.

More and more truck fleets are tightening their control on every single possible risk factor in order to prevent cost losses. Managing safety is the most important factor a trucking company faces. For those who have managed to survive this terrible recession, boasting responsibility and safety can be your claim to fame.  When various trucking companies are fiercely competing for business, those who do not boast trucking safety will fall by the wayside. The trucking company who comes out on top is the one who adamantly reports safety progress to all.

Trucking companies who take safety seriously and pay higher deductibles show that they have confidence in themselves and their employees. Suppliers are now being very picky on who they’ll allow to transport their cargo. If a company has a poor record of accidents or other unfavorable attributes, suppliers are likely to turn to another truck company that has a more stable record and is more dependable.

Hub Transportation believes in offering the best trucking insurance coverage to companies who need a competitive edge to survive in this struggling economy.