Largest Trucking Capacity Purge In History Coming

The freight industry is experiencing a downturn with weak volumes, impacting carriers and brokers significantly. A "great capacity purge" is anticipated, potentially removing up to 600,000 drivers due to regulatory changes and stricter enforcement. New rules on non-domiciled CDLs and English proficiency are major drivers of this capacity reduction. Fraud is rising, further complicating matters for brokers and carriers. Bankruptcies among carriers and brokers are expected due to financial pressures. Larger asset-based carriers are predicted to fare better in this challenging environment. Improved driver pay and incentives will become necessary to attract qualified drivers. The market is expected to rebalance, leading to volatile spot rates and stabilizing contract rates. Shippers should prepare for potential rate increases and capacity constraints. The industry aims for a more sustainable and stable state after the capacity purge.