Demand, Not Capacity, Drives Freight Market

Capacity exits in the trucking industry may temporarily tighten the spot market and boost rates, but these gains are often short-lived. Demand, however, is a structural force that can sustainably drive freight rates up. The COVID-19 freight boom illustrates this, as it was demand, not capacity exits, that led to lasting rate increases. Looking ahead, removing drivers from the market may not fix the market long-term unless demand rises simultaneously.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.