Rolling terrain: Over-capacity, M&A, spot-market activity key in domestic trucking.

The domestic trucking industry is experiencing a shift towards more transactional relationships between shippers and carriers, similar to the maritime industry. Rates and service levels have been impacted by disruptions and driver shortages, leading to increased consolidation and closures among smaller carriers. Trucking costs are currently low, but there is a race to the bottom in terms of pricing, which may lead to more carriers exiting the market. Factors such as consumer behavior, driver shortages, and rising costs are influencing rates and service levels. Carriers and shippers should prioritize addressing driver shortages and fostering collaborations to maintain stable service levels. Overall, rates are expected to remain stable for the rest of the year, and smaller, responsive fleets may have an advantage in the industry. [Extracted from the article]

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