Trucking Bankruptcies Continue

[ATeam]

This from the Purchasing.com web site:

"According to a quarterly report from market analyst Donald Broughton at Avondale Partners, 480 trucking companies in the U.S. went out of business in the first-quarter of this year. That’s roughly 1% of the capacity exiting the market in a three-month period.

"But despite the dramatic demise in the carrier base, Broughton says the capacity exiting the market is still not so much that it would tighten supply enough that it will impact trucking rates or prices. As reported by the Associated Press, Broughton estimates that more than 5% of the current trucking capacity would have to exit the market before capacity would match up with demand and prices would stabilize." Full article

My view: While glimmers of economic recovery can be seen, don't look for a surge in freight or rates anytime soon. If you have made it this far through the recession in reasonable financial shape, I would think you can probably make it the rest of the way. If you are living load-by-load or paycheck-to-paycheck, time is not on your side.

 

[sdelliott31]

Well said and surmised. Exactly what happened to us. We were down to week by week and time was not on our side. I am worried the worst is yet to come. When the automakers go through with the massive layoffs, if no other industry is growing there will be a big impact on the government through unemployment and welfare. I don't think we've hit bottom yet. However, I think transportation will bounce back befor some industries. Good Luck!