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Discussion Starter · #1 ·
What are the parallels between trucking and the ride-sharing and courier industries?

Huge Hint: rideshare and courier are considered spot rates now in all the new Upfront Fares markets as of 2022.

While there has been a lot of attention to how the spot market has fallen this year, Costello said in reality it’s about returning to a more typical balance between the spot market and the contract market rather than a freight recession. “I’ve been hearing people talk about how the truck freight market is collapsing,” he said. “Lets’ go back to 2020 and 2021.”
In a typical economic cycle, what happens in trucking as the amount of freight goes up, capacity tightens and rates increase. So trucking companies add trucks to take advantage of the opportunity. Eventually the economy softens, all those new trucks now equal over-capacity and rates drop. In this cycle, one of the biggest post-COVID frustrations for fleets has kept the industry from adding capacity. Global supply-chain problems meaning trouble obtaining parts and components have kept truck makers from being able to deliver as many trucks as fleets wanted to order. Capacity is loosening, Costello said, as the supply-chain problems have started to ease. At the same time, with the goods-vs-service spending tilting back toward normal, demand is softening as well.
Why This Economic Cycle is Different for Trucking
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