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Inflation And The Cost Of Trucking

I read an interesting article in the Financial Times recently about how the cost of trucking has been helping drive up inflation.

We have all seen the news that inflation was up 7% last year–a lot of it blamed on COVID-related shortages and supply chain problems. What this article did was focus on a big problem dealing with our supply chain–trucking.

Whether we like it or not, about 75% of the goods shipped in this country now come via truck, and truck-driving, for many, is a grueling job. A friend of mine had heard that he could make a $100,000 a year driving a truck, and so spent the money to get his truck-driving license. What he found out is that this kind of money could be made only if you were a long-haul trucker on the road 6 out of 7 days a week, and were ready to forego any kind of normal family life. He called it quits after a couple of months.

Right now, the country is short about 80,000 truck drivers. It is no wonder that the annual increase in trucking costs last year was 17%, and that for the long-haul trucking sector the costs went up 25%. How would you like to be on-the-road, pounding the pavement 6 out of 7 days a week? It is no wonder there is a shortage of truckers.

Inflation is a matter of supply and demand. It is not just gasoline and diesel fuel prices that have gone up. Now, there is a much greater demand for truck drivers than there is a supply of them.

So, when you go to the grocery store and buy, let’s say, a gallon of orange juice–don’t think that the increased cost of it is just coming from the farmers that grow oranges. That juice has to be trucked up here from Florida and people have to paid to drive those trucks.

When you think about what comes to us by truck–whether it be the clothes, food or fuel we purchase–then you can begin to see how that can affect the cost of things.

Ever since being introduced to “truck-speak” back in the days of channel 19 on the CB radio, I have been a fan of those who drive these big rigs. You will know what I mean if you listen to the country song “Convoy” just one time. These drivers are incredible!

But, it is tough work and long-haul trucking is not good for the home life. Would you do it? Young people are shying away from it. Today four out of five truckers are over the age of 45.

On top of this, more, not less trucking is going to be required. Amazon has started its own trucking business to compete with likes of UPS and FedEx. The public wants more and more stuff to be delivered to their homes.

Transportation and inflation go hand-in-hand. Welcome, America, to 2022!

Rolland Kidder is a Stow resident.

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