Consumer Splurge vs. Trucking Industry Decline

Despite a 4.9% Q3 economic boost in 2023, U.S. truckers struggle. 35,000 new trucking firms closed their doors by Sept. 30.

Matthew James Collins, an Ohio trucker, mirrors the trucking plight. A year ago, he hauled goods for four corporates. Now, only two clients remain. So, what's happening?

What's Driving the Trucking Meltdown?

• Booming Consumerism: Thanks to a slowdown in inflation and the American's undying love for shopping, spending shot up.
• Trucking Overcapacity: Post-pandemic saw a trucking boom, with trucking authorities surging from 255,000 in Jan 2020 to 363,000 now.
• Rates Dip, Costs Rise: Average per-mile rates for fleets are down by 11.6% from 2022. Add soaring fuel, repair, and other expenses to the mix.

The Road Ahead
Many believe the only way forward is a significant downsizing in trucking authorities. The current demand can't match the 2021 shopping spree, possibly a once-in-a-lifetime event.

Source: FreightWaves