"I'm more excited about the supply chain enabler side of it, that's actually building some of that tech to help brokers get more efficient, help shippers get more efficient, and help carriers get more efficient."
Consumer Splurge vs. Trucking Industry Decline
Despite a surge in U.S. spending, trucking firms face shutdowns. Can the industry recover from this paradox?
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.