Carrier revocations overachievement illustrates increasing market vulnerability

Week scheme: Carrier Details Net removal – USA Sonar: CDNR.USA

The clear cancellation operations of the carrier – which measure the number of operators of the trucks (companies) that come out of the industry – remain unreasonable throughout the first half of the year. The current exits are 16 % higher than during the same period in 2024. Although the new power release increased this year, it has fallen in recent weeks because new behaviors and enforcement operations may create additional barriers to entry.

The American truck cargo market remains a difficult scene for many transport companies and 3PLS, with no very low demand to support stable commercial operations. Although there is a marginal improvement over the past few years, it has not been sufficient to pay the high rates enough to support the current level of capacity. Many structural issues continue, which increases the risk of lower capacity to very low levels.

Tender rejection rates (OTRI) – which measures the number of times that transport companies reject truck requests for capacity – have risen steadily since May 2023. This trend indicates a decrease in the availability of a carrier. In the weakest markets, transport companies are generally more willing to accept charging, so high rates of rejection in the market below carries more weight.

The instant rates (NTIL), which are traditionally used to measure the health of the truck market, followed a similar escalating path. However, rates can be a noisy scale, because fluctuations in transport lengths and inflationary cost inputs can distort the image. While immediate prices are flat on an annual basis, operating costs have risen-which makes profitability happier. Diesel prices have decreased, providing rare reduction. (Note: Fuel costs are excluded from the scheme price index.)

In May, the president issued new guidance on the application of the English language mastery of the country for drivers. While the details of the enforcement are still unclear, this step can create additional obstacles to new expatriates.

In addition, the efforts made to take strict measures to fraud in CDL, while increasing more stringent examination operations in increasing the tape for potential drivers.

Tender sizes (OTVI) fell about 10-15 % compared to this time last year. While many of this decline stems from the transformation of the situation-especially in the long-range charging that moves to multimedia trends-indicates that the general demand may also be softened.

Besides the clear issue of a decrease in demand that undermines basic work, the inconsistent size makes it difficult for transport companies to maintain balanced networks, and often require months to reorganize them.