Supply Chain Optimization

Significant Woes In The Trucking Industry

 
Bob Costello with the ATA has some great points:

The freight market is and has been worse than the macro-economy for a host of reasons, including:

• Consumers move back to buying services (e.g., travel)

• Related, port volumes have plummeted

• Housing is currently in a recession (construction and sales) 

• And factory output slowing

Between falling spot loads, falling spot rates, much higher costs, and driver productivity declining, capacity is leaving the industry!

(Source ATA and DAT — 2020 =100)
 

Irony: Higher driver pay leads to less productivity as drivers want more at-home time. 

Summary — it is worse than we expected…and prices won’t fall as fast as shippers hoped!