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.
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.
The effects that are being felt by P.A.M. Transportation and other similar companies is an increasing site in todayas society. The industry of trucking is only the first wave of worries because it will eventually start to directly affect the business that they service. In turn, consumers will see the worst of it because they will be forced to pay raised prices to support the whole process.
In conclusion diesel costs are destroying P.A.M. Transportation and something must be done about it so similar companies donat see the same fate. The average consumer as well as these trucking of industries will feel the pain. It will also mean that it might cost more to buy a car or purchase an electronic product. Finally, it can even affect how much you spend to build a home, as the materials to make it are all trucked to the site.
Author: Jim Arnold,This author has published 4 articles so far.