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The trucking industry’s efforts to draw President Trump’s attention seem to have paid off, as he acknowledged a significant issue currently endangering the livelihoods of truckers—declining shipping rates.
During a “Fox & Friends” interview on Friday, Trump stated that truckers are being “price gouged,” referring to complaints that brokers might be manipulating the transaction prices between truck drivers and shippers.
“All they seek is fair treatment,” Trump expressed, adding, “What they desire is minimal in many cases… we are going to support them.”
CORONAVIRUS-RELATED LOW SHIPPING RATES: A ‘ONE-WAY TICKET OUT OF BUSINESS’ FOR SOME TRUCKERS
On the weekend, truck drivers gathered their big rigs along Constitution Avenue in Washington, D.C. to protest against the low shipping rates.
Truck owner Nir Udi and truck driver Yasmani Ferrera joined fellow truck drivers and small truck owners during a rally along Constitution Avenue Northwest near the White House on May 1, 2020, to garner support for their cause.
Data from freight analytics firm DAT indicated that, as of April 30, rates had plummeted to five-year lows for both reefer and flatbed categories. The national average for dry van freight was merely $1.64 per mile, with some areas offering rates below $1 per mile.
TRUCKERS REQUEST CORONAVIRUS PHASE-FOUR AID TO ENHANCE SHIPPING RATES
There is an ongoing debate within the industry regarding whether natural market forces or brokers are responsible for the declining rates. Brokers facilitate transactions between truckers and shippers while profiting from the price difference.
The crisis over shipping rates has escalated to the point where the industry sent a letter to Congress this week, urging the government to regulate the transactional market and improve price transparency. They argue that brokers are obscuring transaction records, leading to suspicions of unfair commission practices that boost their pricing power.
An industry spokesperson informed FOX Business’ Blake Burman on Friday that the White House is “fully aware” of the shipping rate predicament and mentioned that the administration has already taken steps to assist, such as providing personal protective equipment to drivers at rest stops across the nation.
As previously reported by FOX Business, the truck transportation sector experienced a loss of 88,300 jobs in April amidst record unemployment numbers in the U.S.
