Canadian Trucking Company filing for bankruptcy protection

Dave Hess said:
Unfortunately you are correct and this is calm before the storm.

Things will collapse after the election is over.
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The sad part is I am hoping for this. Everything costs way too much. It will also be a reality check for those who don’t remember past the 07-09 timeframe. I’m wondering if we’ll see some of the same issues we saw during the late 70s/early 80s.

Going to be interesting for sure……
 
daves87rs said:
The problem is everything was priced for those low rates. You can charge whatever you want when something can be financed. Look at what is overpriced now: Houses, cars, large ticket items. Interest rates will be over 30% on average soon. Considering we are in a consumer spending based economy- guess what will happen now.
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You've got it exactly right. Many people concentrated on whether they could afford the payments and not on the cost.

But this time was not different. The current interest rates are close to the long term normal. The bill has come due.
 
daves87rs said:
I would say yes and no. The problem is everything was prices for those low rates. You can charge whatever you want when something can be financed. Look at what is overpriced now: Houses, cars, large ticket items. Interest rates will be over 30% on average soon. Considering we are in a consumer spending based economy- guess what will happen now. A recession is the least of my worries. Bottom line- people can’t spend what they don’t have. Guess Wall Street should have though about that before raking in record profit the last bunch of years…
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people can't spend what they don't have. Cash-out refinance and what's in your wallet. Prices for big ticket items will not come down very much if at all. Look back when gas prices were $4.50 any company vehicle that had to come to you for anything tacked on a fuel charge think it ever went off just got turned into a higher charge one way or another.
 
Snagglefoot said:
Pride Trucking, a company that does a lot trucking between the US and CANADA is near bankruptcy. It has control of 20,000 tractor units and is $ 1.6 billion in debt. What does a trucking company have to do to borrow $ 1.6 Billion ?

Apparently things started going bad during the C times, then afterward, too many trucks were put on the road and rates went down. Funny, I thought shipping costs were going up.
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I follow a bunch of long haul truckers on YouTube crisscrossing the USA and they keep commenting on the slowing economy and lower rates per mile.

If you want to know about the economy go to the closest truck stop and talk to the long haul truckers, not a PhD economist on TV.
 
Trucking is a tough industry right now. We had record profits following Covid, but it's been rough since then.
 
Fitter30 said:
people can't spend what they don't have. Cash-out refinance and what's in your wallet. Prices for big ticket items will not come down very much if at all. Look back when gas prices were $4.50 any company vehicle that had to come to you for anything tacked on a fuel charge think it ever went off just got turned into a higher charge one way or another.
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Pretty much!
 
I spent a few seconds on google, and it sounded like a fair amount of capacity was added after the pandemic. So while there might be a slowdown, perhaps there is amplification from oversupply?
 
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