The arrival of new carriers in the US trucking sector offsets exits keeping pricing pressure on
According to DAT Freight & Analytics, the trucking sector lost 907 carriers in March, but an infusion of new entrants and returning carriers is keeping the industry afloat. Despite the fact that thousands of small trucking companies have exited the US freight sector in the last year, numerous new carriers have entered or reentered the market. The impact of the exits has been mitigated by this tendency, which has kept freight tender rejections low. While the industry is leveling off, the big question is why truckers are entering the market now, when freight demand is low and spot truckload prices are falling. The answer could be found in a mix of contract and spot loading. However, in order for the trend to continue, diesel costs must remain lower than last year and seasonality has to come back to freight markets
Source of information – Journal of commerce
Its interesting that while many small carriers have clearly exited the market in recent months but an almost equal number of new entrants and returning carriers have entered the market demonstrates that there is still a lot of interest in the industry