Explaining overcapacity in the trucking market

Truck rates are low, which has led to the conclusion that trucking capacity is too high. A recent FreightWaves article says trucks are overcapacity by 25 percent, and...

By Greg Johnson

March 30, 2023

1 minute read

Explaining overcapacity in the trucking market

Truck rates are low, which has led to the conclusion that trucking capacity is too high.

A recent FreightWaves article says trucks are overcapacity by 25 percent, and it will last most, if not all, of 2023.

In a recent podcast Benjamin Kowalski and Nate Cross of Freight 360 LLC BB #:386267 say it’s not as simple as supply-exceeds-demand. Demand is lower, they say, for many reasons, from the peak in mid-2021.

Carriers are responding to the differences between contracted loads and the spot market, they say, and it’s much easier and cheaper to decrease capacity than to expand fleets.

Watch the podcast here:

Greg Johnson is Vice President of Media for Blue Book Services

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