Tweet
This article talks about freight rates declining, the "driver shortage" and "capacity shortage" issues, increasing fuel prices, and the possibility that some carriers may go out of business or be acquired by larger companies.
Conditions for fleets are deteriorating and it will get bloody
https://www.freightwaves.com/news/co...get-bloody/amp
Conditions for fleets are deteriorating and it will get bloody
For the freight market, 2019 has been shaping up to as a tug of war between the bulls and the bears. The large enterprise carriers that rely heavily on committed business (commonly referred to as “contract business”) have been enjoying a decent year, while the small carriers that are heavily exposed to the transactional spot market have been faced with a very tough market.
The disagreement has been obvious on Wall Street earnings reports. The large carriers have spoken about decent freight conditions and have been far more optimistic than the Facebook message boards that are made up of small operators. Comments like “worst market ever” and “a bloodbath is coming” are common on Facebook groups like Rate Per Mile Masters. Groups like this are helpful to understand the current sentiment in the market, even if they tend to be highly emotional.
For observers who are trying to get a feel for the direction of the market, the discrepancy has been confusing. The struggle between the bulls and the bears is about to become clear and while it pains us to call it, the bears are going to be proven correct.
The disagreement has been obvious on Wall Street earnings reports. The large carriers have spoken about decent freight conditions and have been far more optimistic than the Facebook message boards that are made up of small operators. Comments like “worst market ever” and “a bloodbath is coming” are common on Facebook groups like Rate Per Mile Masters. Groups like this are helpful to understand the current sentiment in the market, even if they tend to be highly emotional.
For observers who are trying to get a feel for the direction of the market, the discrepancy has been confusing. The struggle between the bulls and the bears is about to become clear and while it pains us to call it, the bears are going to be proven correct.