U.S. Trucking Capacity Shows Little Return After 4 Years as Costs and Verdicts Squeeze Entrants
Updated
Updated · Yahoo Finance · Jul 31
U.S. Trucking Capacity Shows Little Return After 4 Years as Costs and Verdicts Squeeze Entrants
3 articles · Updated · Yahoo Finance · Jul 31
Summary
Trucking capacity that exited the market over the past four years is unlikely to return soon, LRT Solutions' Ben Kavlinar said, leaving supply tight even before freight volumes stage a meaningful rebound.
Skyrocketing equipment prices, nuclear jury verdicts against carriers and rising insurance premiums are raising barriers for new entrants and keeping sidelined capacity from reentering the market.
Tender rejections are running around 15%, above comparable periods in prior years, suggesting tighter conditions despite a softer recent stretch that speakers tied partly to normal July-August seasonality.
LRT is using the tighter market to chase new shipper relationships ahead of upcoming bid cycles, with Kavlinar saying safety is now table stakes and service quality is the main differentiator.
The shift follows a roughly four-year freight recession and suggests any near-term market firming may reflect shrinking capacity as much as improving demand.