Increased gas prices are creating havoc on todayas society not only on an individual level but also for businesses and truckers. Also, in the trucking industry, some of these added costs are becoming a burden on the truckers themselves. The high prices of diesel fuel are also taking its toll on P.A.M. Transportation.
The Times Record recently published an article in there February 10, 2008 edition. This article stated that the current economic standing has led to an $839,909 decline in net income for the P.A.M. Transportation Services Inc over the last quarter of 2007.
According to the article in The Auto Channel on May 1, 2008 that stated more losses for this trucking company, aP.A.M Transportation Services, Inc. today reported net loss of $2,828,326 or diluted and basic loss per share of $0.29 for the quarter ended March 31, 2008.
This is proof that P.A.M. and other trucking companies are greatly suffering by the rising fuel prices. Trucking has always been the backbone of the freight transportation industry and simply cannot be allowed to suffer from this mounting fuel crisis.
As a result of the struggling transportation industry, including P.A.M. Transportation, they are forced to get rid of essential personnel in their offices and lay off others with high wages in an effort to minimize costs. Aside from this, inadequate insurance policies and wages will be offered to safe money creating an unstable company.
The changes being made can be seen by the way P.A.M. Transportation has limited its coverage area. For example, the company no longer uses on of its New Jersey terminal which may save money in long the run, but in the short time they had to pay employers because of the way they severed their work contracts. Lawsuits were made for environmental concerns and the employers. The only plus of the situation is that more employment opportunities were made available in Sacramento.
P.A.M. Transportation is only one example of how the trucking industry is suffering and this is truly only the beginning. Eventually the lack of fund will trickle down to the businesses that use the trucking industry and then the clients and consumers of the businesses will have to pick up the tab with higher prices.
The increases in diesel prices are affecting not only P.A.M. Transportation but also the construction of housing. Everyone is feeling the economic constraint that fuel prices are placing on people today. Buying fuel related products may begin to cost more as well which will cause an even bigger burden on the economy. The only way to help P.A.M. Transportation is for the diesel costs to decrease.