Carriers Dependent On Spot Freight Face Increasing Pressures

I believe the key point is the 'Spot market load postings have dropped 78% since the market peaked in early 2022".

A lot is issues occurring from this. 22% slightly more than a 1/5th since 2022 whiles the amount of Owner Operators more than increased since 2020 shows trouble. Owner ops with Direct customers are surviving whiles those on the load boards fight for freight shipment competition. DAT reports the current national load-to-truck ratio is 2.04 loads-to-truck, compared to the September average of 2.78. However, it's still double.

 

It’s a ATA article and like us Canadians have found out it’s not ending quickly as expected.. main reason is many of these new carriers own nothing but the truck they live in. Compared to their previous lifestyle a few hundred a week to live on is way better than what they were used too. It’s been a few decades in Canada that most have been wondering how they can haul for so cheaper yet still more start new companies. Megas brought in the cheap labour now they compete against it . You reap what you sow .

 

To be fair even in the U.S with apartment prices explodeing and house prices hitting pure insanity. For those who like or can tolerate the lifestyle....living out of a truck is not a bad gig and a good way to really build up a nest egg. The downside is that those guys can live off 30 or 40k a year and make out better then 9 to 5 guys making 60 to 80k....and it drives prices through the floor which is disrupting the old system and making the industry worse in many ways.