New Survey Reports Owner-Operators May Face More Challenges

Independent owner-operators may face an uphill battle in the coming months with a decline in spot market rates and increasing fuel costs. Reduced need for capacity could impact higher cost carrier the most, but owner-operators of all sizes should be prepared.

Here are the top takeaways from the report:

• According to the latest of owner-operators, moderating economic activity and normalizing supply chains have reduced the need for capacity and are driving the outlook for rates and demand lower, leaving high cost carriers worried about turning a profit in the coming months.
• Sentiment among survey respondents in the spot truckload market has turned significantly more bearish, according to survey respondents, about the prospects for demand and rates growth.
• Current spot conditions may likely force a rebalancing, forcing higher-cost carriers to reassess their operations.
• Pessimism among carriers has touched the pandemic lows seen in 1Q20. Roughly 33% of respondents expect load growth to decline over the next six months, the lowest reading since 1Q20 and significantly higher than 3Q21 at 9%.
• Many carriers raised concerns over the strength of the upcoming peak season. Refrigerator carriers were the most optimistic, with only 10% of those surveyed projecting a volume decline in the coming months.
• Spot rates excluding fuel surcharges have fallen 31% since peaking in late December, which has negatively impacted carrier sentiment. Only 26% of carriers expect rates to rise the next six months.

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Read the original article here: The Trucker – Owner-operators to face more challenging conditions, new survey says

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