High Gas Prices Hurt P.a.m. Trasnportation
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.
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.
Another news reference was made as an article in The Auto Channel editorial on the first day of May, 2008. This article stated again that P.A.M. Transportation Services, Inc. had actually resulted in a loss of over two million dollars and their stock share dropped to only twenty nine cents a share for the first quarter of 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.
There will need to be some major changes in P.A.M. transportation and similar trucking companies that are struggling in the same way. These changes will most likely come in the form of lay offs and cutting corners in wages and bonuses so that the company can stay afloat in the horrible market.
Proof of diesel costs destroying P.A.M is that they ceased operations at a Parsippany, New Jersey terminal which resulted in them having to pay a severance package the employers there totaling $300,000. This also included a legal settlement in the amount of $300,000 that was caused by an environmental remediation lawsuit filed in 1986. The bright side of the story is that P.A.M. was able to offer local truck driving jobs in Sacramento and other otr truck driving jobs to the displaced employees.
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.
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