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Shakeout ahead

Published Friday, June 01, 2007

The recent report of economic activity shows a significant drop in the growth of consumer demand, as well as business investment. Coupled with the number of trucks available to haul freight, we can expect a shakeout for the rest of this year and into next year. By a shakeout I mean that the number of fleets in business will drop. This drop can be attributed to three factors: reduced freight relative to capacity, reduced earnings, and a continuing driver shortage. Even with the driver shortage, current fleet capacity has risen sharply from last year's level. With equipment capacity ...

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