TRUCKING FLEETS * USA: Going out of business
* Tennessee - Trucking companies failures on the rise. Done in by rising diesel prices and a weak freight market
--- More and larger trucking companies are failing as fuel prices rebound and demand for freight services remains muted, a new report says... In the second quarter, 120 trucking companies with an average fleet size of 17 tractor-trailers halted operations, according to an analysis by researcher Avondale Partners LLC. That’s up from 70 firms with an average fleet size of 14 big rigs in the same quarter a year earlier... There are more than 168,000 interstate motor carriers with more than 2 million trucks in the U.S., according to the American Trucking Associations, an industry group... More trucking companies fail in the first half of the year because of increased costs associated with weather-related accidents, the costs of heating and idling trucks, and renewing truck registrations... Trucking rates began to decline last year amid weakness in the import market and tepid growth in the consumer economy. But the biggest factor, according to many analysts, has been overcapacity... The U.S. Department of Transportation reported this week that demand for freight transportation services fell by 0.3% between May 2015 and May 2016. In June, demand for for-hire trucking rose faster than the supply of trucks, only the fourth time in the last 19 months that the market posted such an improvement...
Nashville, TN, USA - The WSJ, by ROBBIE WHELAN - July 14, 2016
Labels: trucking industry news USA