It’s no secret that the economy is struggling right now, and truckers are feeling it, too. One of the largest companies, Werner, reported a second quarter loss, sending their shares lower as well. The good news for the company – and perhaps other trucking companies that may follow its lead – is that there are ways to help reduce expenditures even in these tight financial times.
An increasing popular way that Werner has done this is to reduce how many miles are not billable. Other helpful decisions have come from reducing the amount of idling time and installing auxiliary units for power, as well as raising the percentage of aerodynamics trucks that are being used, because they get better mileage.
That doesn’t mean that Werner is completely out of the woods, as all trucking companies are fighting the rising fuel prices, but it does mean that the company might not see as much of a downturn next quarter. That can help its share price rise and help the company continue to keep its for-hire carrier prices as low as possible.
The longer it can keep its prices low, the longer Werner can continue to operate at a high volume. If the carrier is forced to raise its prices too high, companies that use it now will switch and Werner’s profits will continue to decline, which is something that no one wants to see happen.
