The trucking industry continues to struggle through a prolonged freight downturn, and despite major headlines about large carriers shutting down, it’s the small trucking fleets that have the most to worry about. While small operators survived longer than many expected—thanks to low overhead, COVID-era financial cushions, and smarter use of technology—new regulatory crackdowns may push many of them out of the market.
Why Small Fleets Survived — Until Now
Industry analysts say small trucking companies managed to stay afloat even as freight rates dropped sharply. Avery Vise, VP of trucking at FTR Transportation Intelligence, notes several reasons:
- Pandemic stimulus funds helped sustain small businesses.
- Many owner-operators paid off equipment or reduced debt during the high-rate years of 2021.
- Small fleets operate with limited overhead—no large offices, support staff, or expensive infrastructure.
- Technology helped improve equipment utilization, allowing them to stay profitable even when rates softened.
As a result, while large carriers made news for shutting down—like 10 Roads Express announcing closure in January—smaller fleets quietly disappeared in far greater numbers. Around 14,000 small fleets per month have given up their operating authority in recent months.
If Small Fleets Are Leaner, Why Are They Closing?
Even though the economy temporarily favored smaller operations, new and stricter federal regulations are beginning to hit them harder than big carriers. These include:
1. English Language Proficiency (ELP) Crackdown
The Commercial Vehicle Safety Alliance (CVSA) now includes English proficiency in its out-of-service criteria. Drivers who can’t communicate adequately in English—especially during roadside inspections—may be removed from service.
Key impacts:
- Disproportionately affects immigrant drivers, who make up a large share of small fleet and owner-operator segments.
- Although ELP violations historically made up only 0.16% of total FMCSA violations, enforcement is expected to increase.
- Larger carriers, with structured hiring and training programs, are less vulnerable to this issue.
2. Stricter ELD Enforcement
FMCSA has begun cracking down on noncompliant electronic logging devices (ELDs) and tightening approval processes.
Small fleets are most at risk because:
- They often rely on cheaper, lesser-known ELD systems, five of which were recently declared noncompliant.
- Once an ELD is flagged, drivers can be immediately placed out of service.
- New device vetting rules require detailed documentation and verification that many small vendors may struggle to meet.
Large carriers typically use well-established, reliable ELD platforms, making them less likely to be affected.
3. New Restrictions on Non-Domiciled CDLs
FMCSA has tightened requirements for commercial drivers who are not permanent U.S. residents by:
- Raising documentation requirements
- Changing eligibility rules
- Asking some states—especially California—to revoke previously issued licenses
This impacts small fleets heavily because many employ immigrant drivers with non-domiciled CDLs.
What This Means for the Future
Analysts expect these regulatory crackdowns to reshape the driver pool and potentially sideline many small operations. While the intent behind the rules is improved safety and compliance, the practical effect is a reduction in active capacity—at a time when the market is already oversupplied.
The bigger concern is what happens when freight demand rebounds.
Avery Vise warns:
“At some point in late 2026 or 2027, we might be right back to talking about a driver shortage.”
If too many small fleets shut down now, the industry could be left scrambling for drivers when the market tightens again.
Looking Ahead
The trucking industry is in a unique period where:
- Overcapacity allows regulators to enforce long-ignored rules
- Small fleets are being forced into compliance
- Large fleets still struggle to grow due to the weak economy
For now, the system may balance itself. But once freight volumes rise, the absence of thousands of small carriers could create new challenges—and possibly reignite the driver shortage debate.
The coming years will test how well the industry can adapt—and whether small fleets can survive long enough to see the next upturn.
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