Journal of Commerce
May 12, 2023
Manny McElroy, senior vice president of transportation with ITS Logistics, said he believes more carriers have survived the downturn because owners saved the cash when rates hit record highs in 2020 and 2021. Some small fleet owners, for example, paid off their trucks with the excess cash, eliminating a sizable monthly bill that may have been too much to bear in 2023.
“There was a 30% increase of carriers that came into the market during the peak, but the decrease in carriers is only in single digits right now,” McElroy told the Journal of Commerce on Thursday. “We expected at the end of quarter one to have the capacity tightening with smaller carriers exiting the market, but it hasn’t happened at all.”
Smaller fleets handling dedicated business.
McElroy said dedicated truckload business has also allowed smaller carriers to survive, unlike previous business downturns.
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