Falling Trucking Employment Signalling Recession?

Trucking employment has been a reliable economic indicator for decades, and recent data shows a concerning trend. According to a chart from Game of Trades, trucking employment is declining sharply, a pattern that historically precedes recessions.

Craig Fuller, CEO of FreightWaves, pointed out that this dip indicates carriers have stopped adding drivers, suggesting a slowdown in the industry.

Recent reports reveal a complex narrative behind these numbers. Contrary to the myth of a trucking shortage, the current market indicates an oversupply of capacity. Fuller, in various discussions, highlights that the "great freight recession" or "freightcession" is pushing weaker players out, aiming to stabilize rates and capacity.

Key Insights:

• Market Saturation: The trucking industry faces oversupply, debunking the myth of a driver shortage.
• Economic Indicator: Declining employment in trucking often signals broader economic troubles.
• Stabilization Needed: The market requires a reduction in the number of trucking companies to balance supply and demand.

Why It Matters

Understanding these trends is crucial for stakeholders. For carriers, it signals a need for strategic adjustments, while shippers must be prepared for potential disruptions and changing rates. As the industry navigates through these shifts, it pays to stay informed with data from multiple sectors.

Sources: Game of Trades