No signs of truckload capacity recovering
Many expected a recovering truckload market after months of rate inflation. The data suggests the opposite. The post No signs of truckload capacity recovering appeared first on FreightWaves .
Truckload capacity has shown no signs of recovery heading into the holiday season, according to new data. The Accepted SONAR Truckload Volume Index (ASTVI) has fallen by more than 4% over the past four weeks, reaching a low of 9,518 loads accepted by carriers. This is the lowest level outside a holiday week since January and marks minimal improvement from a year ago when rejection rates were under 6% and the ASTVI was around 2% higher.
The market's failure to regain efficiency suggests that demand has not caught up with capacity. In contrast to previous cycles where demand surges outpaced supply, the current situation appears to be supply-led, driven by limited capacity and barriers to entry, such as stricter rules on drivers and higher operating costs. Despite increased spot rates, carriers are hesitant to invest in growth due to higher borrowing costs and the lack of the government lending that was available during the COVID-19 period. Transportation procurement teams are advised to prepare for a tighter market into 2027.
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