U.S. trucking is entering a tumultuous period that will likely reshape the $875 billion industry.
Shipping rates that spiked during disruptions caused by the pandemic have plummeted — some are now calling it a “freight recession” — as inventory gluts across the U.S. lowered demand. That has placed the sector at a disadvantage during annual contract negotiations now in full swing, but means retailers and other customers will benefit from lower transportation costs.
There’s also a shakeout among the brokers who match trucking companies with loads that need to be shipped. Silicon Valley entered the fray a few years ago and digitized what had been a transaction done with phone calls and paper. Large and established brokers have also bolstered their technology, leaving the 17,000 smaller firms that haven’t evolved vulnerable.
