Repossessions for trucks and trailers rose 188 percent in the third quarter, compared to the same quarter in 2004, according to a new report.

Earlier this week, Nassau Asset Management – an independent company that provides asset recovery, appraisal, collections, liquidation and remarketing services for equipment leasing and finance companies – released its NasTrac Quarterly Index detailing the sharp increase in truck repossessions and liquidations for trucks.

The report reveals trends in repossessions and orderly liquidations based upon the company’s own internal activity in a given quarter compared to the same quarter the previous year.

Edward Castagna, Nassau president, said several factors, including fuel costs, appear to be influencing the 2005 upswing in repossessions and liquidations for some equipment sectors, including trucks.

“Fuel costs are among the adverse economic conditions affecting repossessions,” Castagna said in a press release. “There is no question in our minds that rising fuel costs earlier this year made it harder for truckers, construction companies and other firms to do business, which resulted in more repossessions.”

Repossessions and liquidations during the third quarter, compared with the third quarter of 2004, increased in four of five equipment categories, including:

• Trucks/trailers up 188 percent;
• Construction equipment up 126 percent;
• Printing presses up 49 percent; and
• Machine tools up 22 percent.

However, repossessions and liquidations of medical devices – the fifth category – decreased for the first time in 2005, dropping 24 percent.

On a related note, the topic of high diesel prices driving truckers out of business is beginning to surface in the mainstream media. Todd Spencer, executive vice president for the Owner-Operator Independent Drivers Association, told the San Antonio Express-News that fuel prices have shut down hundreds of small-business truckers.

“Some are taking loads without a fuel surcharge, just hoping they can pay the truck note and the insurance. They end up subsidizing the shippers,” the newspaper quoted Spencer as having said.

“We have some truckers operating for $1.10 a mile, and fuel is costing them 65 cents a mile. While they may operate for a while, if they’re taking home anything, they’re having to live on the money that should be set aside for maintenance and to replace equipment.”

Spencer also told the newspaper that more than 700 trucking companies went out of business in the third quarter due to outlandish diesel prices – roughly double the amount from the same quarter in 2004.