P.a.m. Transportationsa Profits Get Pumped By High Fuel Prices
While many consumers are plagued by the rising cost of gas, they are not the only casualties of this oil war. Many trucking companies are getting slammed and are struggling to find ways to make up for their increased fuel costs. Many of these extra costs are getting passed on to the employees of these companies. Weall look at the ways that diesel costs are destroying 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.
A recent article from The Auto Channel that was issued on May 1, 2008 stated that losses were continuing for the company in the current year. For the first quarter of 2008, a whopping almost three million dollars was lost and their share were reduced to a value of only twenty nine cents.
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.
Drastic measures need to be taken to help P.A.M. Transportation and other trucking firms. P.A.M. is exercising executive pay cuts, and the remaining cuts come in the form of lower employee wages and health plans. This is bad for these companies, and itas bad for America.
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.
Diesel fuel prices are hitting the roof and are causing a negative impact on P.A.M. Transportation as well as many other companies. The cost to transport products is increasing and the products that are run on fuel are also increasing. This will only negatively impact the economy and the effect it has on people.
