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They can't just double salaries and still expect to have customers. At some point, companies will simply not purchase the goods if they can't truck it economic
by PaywallBuster 5y ago
They can't just double salaries and still expect to have customers.
At some point, companies will simply not purchase the goods if they can't truck it economically or will look for alternatives.
- imtringued 5y agoThat just means there is no shortage.
- ridaj 5y agoIf there wasn't a shortage then sure they might lose money by paying drivers more, but the supposed shortage of labor hurts more (it leads to business that they don't do at all)
- lowmagnet 5y agoWhat are the low-cost alternatives to trucking?
- thehappypm 5y agoRail freight is cheaper than trucking in general
- deleted 5y ago[deleted]
- petre 5y agoYou still have to provide last mile delivery, loading and unloading operations thus it takes more time. Plus adjust the logistics chain. If you have big warehouses built for trucked goods, tough luck.
- bluGill 5y agoToo bad the rail industry doesn't care to compete in general. Trucks run when you want them to. Rail means you need to rearrange your shipping to fit them. There are exceptions, but when it doesn't take much digging to discover rail doesn't care to get more of this business even though they could with a bit of customer service.
- ohyeshedid 5y agoMaybe comparing the bill from a trucking company against the bill from the rail; How much does it cost to get that freight from the train station to my delivery location, though?
- thehappypm 5y agoIs it really so different? Trains offload at depots; similarly trucks don't take every piece of cargo on board directly from A to B.
- rapind 5y ago> At some point, companies will simply not purchase the goods if they can't truck it economically or will look for alternatives. I don't know why you were downvoted. Maybe people assumed a political position, but AFAICT you're just stating facts. If trucking in its current form becomes unsustainable then it'll evolve into leaner alternatives, or we'll simply pay more / consume less. Nothing wrong with that.
- acdha 5y agoI think it’s more the “assume a perfect spherical cow” style of argument. It’s true that people will stop buying if the shipping price hits some incredibly high level but it’s a complex system where driver pay is just a small part. The most likely outcomes are things like raising their own prices, becoming more economical in their use or packaging, shifting the delivery times & intervals, etc. — things which happen all of the time without reaching such dramatic levels. The data I’ve seen has the cost of fuel being right behind compensation in cost and that fluctuates all the time without people halting purchases.
- acdha 5y agoSome customers won’t buy but the driver’s pay is only one part of the total cost and most businesses aren’t running on margins that tight for very long. If shipping prices drift up, they’ll adjust their usage or raise their own prices rather than voluntarily go out of business.
- rwj 5y agoTrue, but isn't that the while point of the supply-demand curve? Not enough drivers to cover the work means that prices should go up, and some marginal customers will go away, until the whole thing balances. It's odd the way people understand that increased prices will lower demand, but not see that demand will also drive prices.