As of April 2023, the U.S. Department of Transportation reported that there were over 750,000 active carriers in the U.S. that own or lease at least one tractor. Even though experts suggest we are now at the bottom of the market and demand will only increase, to say that the market for freight is fierce is an understatement. The financial reserves that fleets had built up during the Covid pandemic freight boom are now nearly depleted and trucking companies’ current bidding processes may determine if they’ll survive and thrive or need to shut their doors.
The strategy used to decide which lanes to bid on and at what rates can be the difference between profit and loss in an industry that operates on tight margins.
Read the full article at "Supply & Demand Chain Executive."