Freight Costs Set to Rise?: Freight Companies See Capacity at 1970s Low Levels

April 6, 2009

FleetOwner.com’s recent post reports that freight trucking companies are seeing low 1970s capacity levels and excessive equipment purchases as “incredibly difficult on fleets’ bottom lines.” In fact, FleetOwner.com explains how some carriers did not predict severe recession effects because of cash boosts as diesel prices dropped in Q4 of 2008. What does that mean for Wholesalers?

Mainly it means ground freight providers see raising rates rather than adding capacity will bring greater profits in the shortest amount of time.

Recession conditions will push freight carriers to conduct business differently to survive changing everything from expected business growth, hiring, processes and utilizing technology. Even so, expectations persist that small and medium fleets will go bankrupt in Q1 of 2009, reducing freight options and competition.

This doesn’t mean, though, that freight available is moving to another mode of transportation. The industry predicted a robust move from truck to rail, and so far, there’s no evidence of a move one way or the other.

Posted By Russ · In Industry 

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