Concerns about the state of the trucking industry are on the rise after an Indiana-based trucking company filed for bankruptcy.
Celadon Trucking shut down operations leaving thousands of drivers without jobs. This comes just days after two former officials were charged in a fraud scheme. They’re are accused of defrauding the company and its shareholders of $60 million in stock value.
It is the latest in what some drivers describe as an industry downturn.
More than 600 trucking companies have reportedly filed for bankruptcy in the first half of the year.
“Greed is the number one problem in this industry,” said John Allen, a local truck driver. “The ones that control the money want to keep the money.”
Allen knows the ins and outs of the industry. He has been driving trucks for more than 20 years and owns a small trucking company.
“This is probably one of the worst years I’ve seen in 22 years.”
He said crashes involving semi trucks has gone up, trucking companies continue to go out of business, and companies are paying less to have goods shipped.
“$1.60 a mile on average is about the best your going to find,” said Allen. “There are people trying to get you to haul for 80 cents a mile. For me to run one of my trucks and pay my driver good money, I can’t afford to run 80 cents a mile. I’ve need $2.00 a mile or more.”
Now more than 3,200 former Celadon drivers are looking for work, which could have a negative impact on drivers.
“They’re going to be looking for jobs that’s going to give mega companies an opportunity to pay less,” said Allen. “If companies would take care of their drivers we wouldn’t have such a problem.”