Trucking Sector Braces for 'Capacity Crunch' in 2024
The for-hire trucking sector is grappling with significant overcapacity, largely driven by the growth of private fleets and a prolonged boom of owner-operators. Tim Denoyer, a senior analyst at ACT Research, has discussed this issue and predicts a 'capacity crunch' in the near future.
The overcapacity situation is partly due to owner-operators staying in business longer than anticipated. Pandemic profits and banks' reluctance to repossess equipment have contributed to this trend. Denoyer expects an improvement in freight demand in the fourth quarter of 2023, but he warns that this could lead to a 'capacity bottleneck' in the first quarter of 2024.
In a recent interview on the Fleet Lead podcast, Denoyer delved into the trucking industry's overcapacity problem. He highlighted the challenges posed by the expansion of private fleets and the prolonged boom of owner-operators.
The for-hire trucking sector is facing a significant overcapacity issue, with Tim Denoyer predicting a 'capacity crunch' in early 2024. As freight demand improves, the industry must address this challenge to maintain efficiency and profitability.
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