Planing for negative economic swings is a must for all truck owners. There are plenty of warning signs that have been detailed recently by several economists and business publications such as lombardiletter.com, Fortune.com, Bloomberg and Fox Business that indicate our economy is beginning to slow. That means less freight transportation opportunities for non-essential items. Products such as: building materials, boats, RV’s, new vehicles, electronics, plastic products, books, general house hold goods and the list of products that will all be negatively impacted is endless. Avoiding transporting these types of products and choosing a more economy resistant product is your best defense against a slow economy or even a recession or depression.
My view of the best freight to haul is based on my business philosophy. I strongly believe in consistent and reliable cash flow. In trucking that means hauling freight that is the most reliable during both good and bad economic times. Currently the economy is booming and my article “Trucking – Never Been Better” outlines some of the best times I’ve enjoyed in Trucking. However, economies are ever changing and the days of our good economy are certain to end. Preparing now for a negative economy ahead of it’s impact on trucking is your best defense from a financial disaster.
Transporting food, especially refrigerated food, is the most consistent freight to transport that is the least impacted by a bad or down economy. Food is the last product that consumers stop purchasing. As such, choosing a customer that supplies refrigerated food products to the most basic supplier of foods to consumers is the most stable freight you can transport. If you have a choice to haul fresh beef to a grocery store warehouse or to haul fresh Caviar to an exclusive retailer you would be more secure hauling the beef. Beef products are purchased by a much larger customer base and are a staple of virtually every home in the United States and around the world.
Nothing is a guarantee. But it does seem obviously to me that transporting fresh food products that are a staple in almost every home refrigerator in American is the most resistant to economy swings. Thus they are the very best product to haul to enjoy a successful and profitable trucking business.