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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