P.a.m. Transportation Stuggling At The Pump
The economic situation and foreign oil dependence have greatly increased the prices of diesel and regular gas. This is not only effecting citizens driving cars to work and back, but also the truckers. In fact some of the truckers are being forced to pick up the gas tab on their own. P.A.M Transportation is one company that is suffering from these high gas prices.
In an article that was published in the Times Record on February 10, 2008 they reported a large loss, it is written that aP.A.M. Transportation Services Inc. reported a large loss of $839,909 net income loss in the last three months ending in December 2007.a
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.
Rising fuels prices and struggling freight liners are a clear sign that things are not looking good for P.A.M and fellow trucking businesses. The problem of high fuel prices is trickling down to effect the essential personnel. The movement of things using trucks is necessary to keep a strong economy.
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.
P.A.M. Transportation has had to cut operations to conserve money. This just backs up the theory of high gas prices affecting the travel industry. In fact, the company actually stopped working at a terminal in New Jersey and added jobs in Sacramento to try and minimize losses. However, many lawsuits were filed for the abrupt changes and the company lost almost three hundred thousand.
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.