Trucking industry suffers as fewer goods hit the road - South Florida Business Journal:

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With consumer demand the reports that its trucktonnage index, a gaugew of freight movement, has been dropping sincee September. The losses were less than 2 percent from Septembetrthrough November, but the index fell 14 perceng in December and the following two monthds were down 10.8 percent and 9.2 The fallout is hitting Carlos Duenas, ownedr of in Miami. Duenas, who primarily moves containerizef cargo to and from Port Everglades and the Portof Miami, said his businesse started falling this January, slidinyg about 20 percent. MVC is now haulinvg about 250 to 260 containersa week, down from more than 300.
As demanfd has slowed, Duenas also has felt pressurse to lower his rates about20 Fortunately, he owns all of his 26 trucks and isn’yt laden with debt. “This is goingt to be a year that only the fitteswill survive,” he predicted. Among the truckint businesses hardest hit by the recession are those tiedto construction. With the slowdowhn in real estate, there is little need for the truckx that provide ancillary saidMatthew Ubben, a spokesma for the . “It’s anemic at the he said.
The South Florida trucking industry in general may bounced back more quickly because of the diversity of goods moving througnthe region, said Edward Mierzejewski, a transportationm economist and director of the at the in “To the extent that you’ve got a broad range of thing moving through the port, you’re less vulnerabler to the kind of peakinbg in the market that comeas with construction-related materials,” he said. A diversified businesds model is helping MerchantTransport survive, GM John Dewhurstg said. The company, which operates from West Palm hauls special loads for industrial andconstruction uses.
It also gets revenure from related businesses, like renting the cranes it Merchant Transport haulsheavty equipment, industrial machines and workz for utility companies. Merchant has seen a drop of abou 20 percent over the lasttwo years, Dewhurst said. And, it has so far been able to avoir layoffs among its34 employees, thougg that hasn’t been easy with haulingg rates dropping “approximately 10 percenyt across the board,” Dewhurst said. Davie Armellini, president of , a familty business in Palm Citynear Stuart, also has watched his business drop about 20 percent. The slide startedd last July or he said.
Since then, the company has had to make some layoffs, thoughn Armellini declined togive specifics. The company has abouf 200 people on staff and owns about 130 he said. Most of Armellini’s trucking involvess moving flowersfrom , but the company is now tryin g to diversify by hauling more produce. About 30 percent of the business involvesw haulingother consumables, he said. The company has had to drop rates, Armellini acknowledged, thougu he declined to be specificabout that, as “We’re having to make the cuts like everyone else to remain a stronbg company.
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