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As truckers worry about losing their jobs, Trump refrains from bailing out the industry - but just gave 4 drivers a gold key

Apr 17, 2020, 02:02 IST
  • President Trump welcomed truck drivers to the lawn of the White House on April 16.
  • He expressed a thank you from himself and all American people to truck drivers, and gave them a gold key.
  • It is unclear what the purpose of the key is.
  • Meanwhile, the industry is headed for a "freight cliff" and key indicators are pointing towards 2009-levels of recession.
  • Visit Business Insider's homepage for more stories.

The trucking industry is on the cusp of a "freight cliff," reports a Federal Emergency Management Agency report obtained by Politico. The rates of moving goods via truck has fallen to the lowest levels seen since 2009, says Cass Information Systems.

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Scores of truck drivers have emailed Business Insider sharing that their businesses are getting cut to the bone. The industry is comprised largely of small business owners and independent drivers, but even giants like FedEx Freight has been forced to lay drivers off as the coronavirus pandemic slams the US economy.

On April 16, President Donald Trump welcomed four truck drivers, along with American Trucking Associations president Chris Spears and Secretary of Transportation Elaine Chao, to the lawn of the White House to thank drivers.

In lieu of announcing new policies to keep the $800 billion trucking industry intact, Trump gave each driver a mysterious gold key.

It's not clear what the key is for. The White House did not respond to a request for comment from Business Insider.

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"In the war against the virus, Americans truckers are the foot soldiers who are really carrying us to victory, and they are - they've done an incredible job," Trump said before the four drivers spoke and received their key.

"We've had no problems. It's been just great," Trump continued. "And we want to thank you very much. It's really great. We have a little special award too."

The Trump administration has made unprecedented moves to lift several DOT regulations as the coronavirus pushed trucking to the edge in the last month. One was the suspension of the hours of service law for truck drivers moving essential goods. It's the first time the federal government has ever lifted the 82-year-old law.

Small trucking businesses were able to gain access to the $350 billion of Small Business Association loans made available from the stimulus bill, before it ran out of money.

But many small businesses in and out of trucking may be unable to benefit from the programs in the $2 trillion stimulus bill that Trump signed into law last month. Now that the lending program has run out of cash, businesses with 500 or fewer employees are warning that they won't be able to keep their doors open.

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Jeremy Reed, who has been a truck driver for 22 years, is one of them. He previously earned $6,500 a week - before hefty insurance, truck maintenance, and fuel expenses - driving his own truck for air cargo companies like FedEx and Forward Air.

Now, his gross earnings are down to $2,200 a week, and his accountant is scrambling to help him save his business. He was not able to receive SBA loans.

"I have put all my money and credit in this business to get it going, and I'm not going down without a fight," Reed said. "I was hoping that the SBA was going to be a lifeline, but that's not a reality for me."

As of this writing, Reed has also received no golden key.


Do you work in the trucking industry? Email rpremack@businessinsider.com.

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Read more about how coronavirus is affecting America's 1.8 million truck drivers

In an unprecedented move, the Trump administration suspended an 82-year-old road safety law for some truck drivers, showing how much coronavirus is pressuring retailers and hospitals to maintain cleaning and medical supplies

America's largest trucking companies won't reveal how - or if - they'll get their drivers home if they get coronavirus, and truckers are terrified

Leaked memo reveals trucking giant mistakenly distributed faulty sanitation wipes to its 10,000-plus drivers

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