Why the Truckload Cycle Matters

Why the Truckload Cycle Matters

Paper Transport Paper Transport

Paper Transport

Driving innovation, safety, and sustainability across many industries—PTI is more than paper, we move possibilities.

发布日期: 2024年5月28日
+ 关注
"Classic Truckload Cycle" - Source ACT Research Co. 2023

Capacity Is Tipping into Early Cycle

The transportation industry is at a critical juncture, with capacity poised to realign itself after a period of turbulence. Early Cycle is in sight and shippers should be prepared.

Carrier Financial Strain

  • 4% profit margin = little room for error
  • Large public carriers operating at 2-3% margin (usually 10%)
  • Rising insurance costs
  • Threat of nuclear verdicts

"Total Truckload Spot Rates" - Source FTR Trucking Update

Signs Capacity Leaving

Current rates are not sustainable, spelling trouble for carriers. Continued reliance on these rates threatens to force more revocations.

"Change in For-Hire Carrier Population" - Source: Federal Motor Carrier Safety Administration Analysis by FTR Transportation Intelligence

Carrier Population

  • 2021: 42% increase in carriers due to government support
  • 2022-2023: increase in failures lead to record-level carrier revocations
  • TODAY: surplus of 92,000 spot-market-reliant carriers with 1-5 trucks

"Driver Capacity Changes vs. March 2020" - Source: Federal Motor Carrier Safety Administration Analysis by FTR Transportation Intelligence

Truck Utilization

  • 90% utilization: larger carriers are not hiring to mitigate costs
  • 94-95% utilization: rates typically rise
  • Truckload contract rates steadily increase as capacity slows and rates begin to rise

"Active Truck Utilization" - Source: FTR Trucking Update

Are you ready?

The shift to truckload’s Early Cycle is around the corner. It’s important to optimize costs by reducing deadhead, optimizing hours of service, and increasing utilization.

Secure an optimized rate with Paper Transport. We’re with you for the long haul.


PTI Market Update PTI Market Update

PTI Market Update

2,387 位关注者

订阅

要查看或添加评论，请登录

Paper Transport的更多文章

社区洞察

其他会员也浏览了