I was talking to someone who is running one of these companies the other day, can't mention names but he made an odd comment that got me to thinking about something.
" ... one of the biggest issues we are facing right now is a lack of trucks to properly cover our customers ... "
AND I asked this question to see what made him think that;
"... why would you say that?
Let me explain it before you answer it.
What I mean is the level of real expedite freight is less than what it was 10 years ago, or seems to be by your numbers you gave me but the level of transportation units within the combined fleets seems to be 8 to 10 times higher than it was, wouldn't it be more effective to lower the transportation units to drive up rates and increase revenue?"
I got no real answer, just a lot of ah's ...
What we saw or told we saw from last years fallout was a loss in our fleets, many owners went under because of a lack of work. Sequentially rates rose to a point but now seem to slip a bit. Work is slipping a bit more too. BUT if fleet number reductions are the key, shouldn't these companies strive for lower numbers as a whole industry while pushing the rates up farther?