Home » Markets » Coronavirus-induced low shipping rates a 'one-way ticket out of business' for some truckers
Coronavirus-induced low shipping rates a 'one-way ticket out of business' for some truckers
Coronavirus takes a toll on trucking industry
JKC Trucking co-owner and vice president Mike Kucharski says ever since coronavirus started, the trucking industry had to adapt its plan to transport food and some of those changes may be permanent.
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Truck drivers are struggling with a new challenge during the coronavirus crisis – low shipping rates – as demand in the sector declines.
According to data from freight and analytics firm DAT, rates as of April 30 had fallen to five-year lows for both the reefer and flatbed equipment categories. For dry van freight, the national average was just $1.64 per mile.
"The current spot rates are extremely low and carriers will not be able to sustain operations very long at these levels," the report read.
In some areas, drivers are being offered rates of less than $1 per mile.
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Demand has declined since large swaths of the economy have shut down, which has caused rates to fall.
"Rates are below numbers at which you can run a truck profitably," Brian Fielkow, president of multimillion-dollar trucking and logistics company Jetco Delivery, told FOX Business.