Trucking carriers continue to exit the market, citing a variety of reasons including low freight rates
Trucking carriers continue to exit the market, citing a variety of reasons including the regulatory environment, low rates, inflated wages, and high insurance costs. To the date, there is little to suggest that capacity has bled off enough to materially affect spot rates – most of the discussion with private and public third-party logistics providers this summer has been around very loose capacity.- According to the article in freightwaves.com and its author
“That may be changing. Market data and anecdotes from freight brokers now suggest that enough trucking capacity has exited the industry to support a floor under the spot market. Price, of course, is a function of both supply (trucking capacity) and demand (freight volumes), and the supply side is the hardest to get a handle on.” -Hampstead also wrote in his article.
FreightWaves is aware that capacity is continuing to leave the market, that the supply of trucks is decreasing, not increasing, both directly and indirectly. Publicly announced carrier shutdowns continue at a steady clip.
Truckers are defaulting on fuel card payments at an accelerating pace.
Read the full story and see SONAR infographics HERE
Source and credits: freightwaves.com /and Mario Pawlowski / iTrucker