US truckers are currently experiencing extreme challenges in the post pandemic world of low demand, leading to many transport companies going out of business.

Since last year, we have witnessed the demise of numerous US trucking companies as a result of low demand and increased costs, as evidenced through the recent collapse of the third largest less-than-truckload operator – Yellow Freight.

Transport activity and demand has continued to decline between August and October, which has been widely attributed to over capacity, weak exports and fewer energy product shipments.

Surging fuel costs have also added to what has been described as extreme market conditions, and as the market shrinks the surviving companies are picking up the slack in over capacity.

According to a report in The Loadstar, average US trucking revenues rose by 7% in the past year, but costs climbed by 22%. Many companies who bought trucks at inflated prices, during the busy aftermath of the pandemic, are now finding the interest payments impossible to sustain and are operating at a loss to maintain payments.

As diesel prices continue to increase, there are widespread fears of more casualties in the coming months.

Westbound are monitoring developments. Should you require any further information regarding the above, then please do not hesitate to contact us.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.