On: High Diesel Prices Bankrupted 16 Trucking Companies in Just 30 Days

[enoint]

I’d see it if:

- diesel prices were actually bankrupting companies. Those companies have been adjusting to daily price fluctuations, and also passing that surcharge on.

- cheaper diesel was expected to remain unattainable across the Midwest, making an E85 (or higher) fleet viable.

- can they pick up some of the fleet of closing operators without labor considerations?

[petra → enoint]

Trucking is a low-margin, high capex business.

There are some niches where it isn't true, when you have some other moat(like a warehouse network, or customer density in a route) so owning trucks strengthens that moat.

But in general, It's a bad business to own trucks.