Truckload capacity tightening viewed as inevitable

Harsh winter weather combined with replacement-only truck buying, last year’s changes to hours of service (HOS) rules, and a spate of trucking company exits in the fourth quarter of 2013 is leaving TL capacity extremely limited for the short-term, according to several industry observers. And if economic activity improves even slightly in the months ahead, then a “true” TL capacity shortage may finally unfold.1379883_420961908050142_1102124823_n

The difficult winter restricted TL capacity in the short term as carriers shut down equipment during storm, with others choosing not to dispatch trucks into regions where forecasts called for heavy snow and/or ice.

That steady economic “chugging” means that as the weather improves and the snow melts, the general longer-term trend of tightening capacity should continue to play out as the economy continues to grow –  slowly and steadily – while a tight driver supply combined with “regulatory drag” puts a damper on the ability of carriers to maintain much less add capacity.

Read more here.

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