Consolidation expected as truckload rates continue down

danpatch · Mar 12, 2009

Consolidation expected as truckload rates continue down

By David Hannon -- Purchasing, 3/12/2009

With demand and rates heading down, truckload carriers are struggling with their bottom lines and freight buyers and shippers need to continue to maintain their communication with carriers to ensure timely shipments. In fact, according to a recent survey, 21% of truckload carriers suggested that they were likely to consider liquidating in the coming six months.

In its most recent financial filing, truckload carrier Knight Transportation, for example, said "a substantial number of small and mid-sized carriers have been forced into bankruptcy due to tight credit, high and volatile fuel prices and challenging industry pricing. We believe that this dynamic could eventually set the stage for tighter industry capacity."

And Heartland Express had similar comments in its most recent filing, saying: "High fuel prices, a tightening economy, and tight credit drove many in the industry to bankruptcy. This along with the harsh realities of declining freight volumes will make it an even tougher operating environment and more difficult for the weaker carriers to survive."
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More here>> http://www.purchasing.com/article/CA6642387.html?industryid=48397

RickG · Mar 12, 2009

danpatch said: ↑

http://www.purchasing.com/article/CA6642387.html?industryid=48397
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That article should be required reading for all wannabes before they waste time and money on a useless CDL .

The one positive for truckload carriers to come out of the demand decline is the supply of drivers. What used to be a major concern, especially for longhaul truckload carriers, is no longer an issue. "There's a huge oversupply of drivers now," said Joe Rajkovacz, regulatory affairs specialist for the Owner-Operator Independent Drivers Association, in a recent story in the Milwaukee Journal Sentinel.
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Elvenhome21 · Mar 15, 2009

Sounds like Bill Gates saying we still have a shortage of qualified engineers. when thousands are laid off seemingly daily

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