Operating costs for truckers have hit a record high in 2023, driven by widespread inflation, growing interest rates, and a tight labor market. Despite firming rates, the demand for freight services is expected to remain low for the rest of the year, with excess capacity persisting. The OOIDA Foundation report highlights that capacity is loose and operating costs are high. FreightAlley suggests that a demand catalyst, such as a hurricane, import surge, or tax cut stimulus, could lead to a sharp increase in demand as capacity tightens. Tender rejections are now above 6% for the first time since July 2022, indicating tightening conditions in the freight market and the risk of a capacity crunch in the second half of the year.
"Tender rejections are now above 6% for the first time since July 2022.Β This is a huge sign that conditions in the freight market are tightening.Β The risk of a capacity crunch in the trucking market during the 2H is real." @FreightAlley https://t.co/vG60gILgrI
Widespread inflation, growing interest rates and a tight labor market will keep freight service demand low, with excess capacity and low freight rates for the rest of the year. Hereβs what to do. https://t.co/kY4fzsbEqG
We expect capacity to continue to leave the market, even as trucking conditions improve. If we get a demand catalyst (hurricane, import surge, or tax cut stimulus), we could get a perfect storm: a sharp increase in demand just as capacity is tightening.
Outside of demand, capacity is loose and operating costs are high, while rates are firming, the OOIDA Foundation report said. #trucking #truckers #OOIDA #Landlinemedia https://t.co/OEVwkIMAPN https://t.co/dmIklRMk6P
With Rates Dropping, Operating Costs For Truckers Hit Record High In 2023 https://t.co/fj4LKU8RoG