Trucking company exits reach 12-month high
April brought mixed signals for the trucking industry, as both new carrier registrations and exits increased. The post Trucking company exits reach 12-month high appeared first on FreightWaves.
The number of trucking businesses leaving the market came in at 7,474 in April, the highest in 12 months and a 26% increase compared to March, according to ITS Logistics’ May ITS Supply Chain Report.
Ongoing volatility in the global supply chain is driving high market turnover and creating opportunities for freight fraud, Josh Allen, ITS Logistics’ chief commercial officer, said.
“Extreme turnover like we’re seeing in today’s capacity market creates an environment ripe for fraud, which is already a huge issue for shippers who don’t have an established network of trusted logistics providers,” Allen said in a news release.
SONAR’s net carrier revocations data (CDNR.USA) shows motor carrier authority exits have averaged more than 1,500 per week since Jan. 1, nearly 8% higher than for the same period in 2024.
Revocations are a measure of truckload capacity exits as carriers lose their licensing to haul freight in the U.S. The elevated revocations could be a sign that conditions are still challenging for many carriers.
While carrier exits reached a 12-month high in April, new carrier authorities jumped 30% year over year in the month and 48% from March to April.
“Spring is typically when the spot market sees more carriers join, and last month was no exception – despite larger freight market trends,” Allen said. “Rates saw marginal movement for both reefer and dry vans, reflecting soft demand in key seasonal industries like food service and home construction. However, a forthcoming import surge from China could put upward pressure on capacity — at least in the short term.”
Retail spending was up 6.8% year over year in April, but consumer sentiment has declined for four consecutive months.
ITS Logistics said reefer and flatbed trucking segments are facing a challenging outlook as consumers reduce spending, while housing starts have also experienced a significant decline.
“Many Americans are beginning to cut back on discretionary purchases such as travel and dining out,” the report said.
Housing starts declined 11.4% year over year in March compared to the same month in 2024, while in April housing starts increased 1.6% year over year, according to the U.S. Census Bureau.
“This reduction marks the sharpest decrease in a year, suggesting a challenging start to the spring homebuilding season,” ITS Logistics said.
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