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The collapse of Yellow Freight, the third-largest operator on the U.S. less-than-truckload scene, hit headlines beyond the industry, but meanwhile devastation generally is playing out across the truckload sector.
Since last year, a rising number of truckers have gone out of business as demand shrank, costs surged and worsening overcapacity pushed rates down.
In recent weeks the downward trend has continued. According to a study by the U.S. Federal Reserve, freight activity and demand declined between late August and early October, which the authors attribute to excess capacity, weak exports and fewer energy product shipments.
The FTR Trucking Conditions Index slumped from a negative reading of -5.34 in July, to -12.54 in August, and the index noted that surges in diesel costs had hit small operators disproportionately, “as they are less likely to benefit from fuel surcharges.”
“As trucking rates continue to plummet, many trucking providers are operating at a loss to maintain revenue streams,” said Paul Brashier, VP drayage and intermodal at ITS Logistics. “While diesel prices continue to increase, more freight carriers are expected to exit the market.”
Read more in an article from The Loadstar.