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USA Truck’s New CEO

USA Truck’s New CEO

USA Truck may be a name known for its trucking business but it seems to be changing direction, another sign of the increasing trend of focus on Freight Forwarding. Truck drivers have seen this change coming a bit sooner than the rest of the people, as they now have to deal with new companies that act as the middlemen between them and the client. The complete ramifications of the changing trends are not really clear right now, but they can lead to a lot of things changing for truckers.

USA Truck’s share price may be a bit down but the company’s profits are good. John Rogers is the new CEO of USA Truck and his appointment as a CEO shows that USA Truck is trying to change. Before John Rogers, every CEO that USA Truck had had operational experience with trucks. The reason was that the board of directors thought that in order to run USA Truck, the CEO had to understand the trucking business deeply. Now the company is trying to focus on its freight forwarding business instead of its trucking business and thus they went with John Rogers.

Why is USA Truck changing its focus from trucking to freight forwarding? It seems like a strange move as the company is known for trucking. The answer comes in the form of numbers. Last years, their trucking division had profits of 6.6 million dollars. On the other hand, their freight forwarding business had profits of 9.2 million dollars. According to the Chairman Robert A. Peiser, “Our goal will be to drive revenue and market share growth in Strategic Capacity Solutions (USA Truck’s brokerage arm), the company’s asset-light brokerage business, while continuing the many improvements we have made in our trucking operations, with a sharp focus on optimizing return on invested capital in both businesses.”

The reality of freight forwarding is that it should result in more work for truckers. Freight forwarding makes people more comfortable with their shipments and cargoes, since they know they themselves do not have to worry about any of the intricate details that are involved with sending goods far away. There is one area of concern; customers are unwilling to pay more for transport, so will the increase of a middleman result in less of an earning for truckers and trucking companies? That is something which only time will answer. – See more at:

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