The trucking industry is grappling with a significant downturn, marked by ongoing employment declines due to overcapacity and weak freight demand.
To put some numbers on the trucking downturn…
If we score various declines in employment based on depth and length, today's downturn is the worst since 2008, but not as bad as 2001.
If we score the decline only on duration, this is the second longest. https://t.co/fVOA3vJybp pic.twitter.com/GKsdCZDQTv
— Eric Basmajian (@EPBResearch) December 3, 2024
The current downturn is the most severe since the 2008 financial crisis, with truck transportation employment dropping 1.9% over the past year. This marks the eighth consecutive month of job losses, according to the Bureau of Transportation Statistics (BTS). However, it still falls short of the depth of the 2001 downturn, which was exacerbated by the dot-com bubble burst and the aftermath of the September 11 attacks.
Despite being the worst since 2008, the current slump ranks as the second longest in terms of duration, showing that the industry has been struggling for several months now.
- Job Listings: The number of job listings for truck drivers has decreased by 25% over the past year.
- Freight Rates: Freight rates have seen a significant drop, with spot rates declining by 15% compared to last year.
- Company Closures: Several trucking companies have closed or filed for bankruptcy, further contributing to job losses.
“The trucking industry has been shedding workers for eight consecutive months, with a 1.9% decline in employment over the past year.” — Bureau of Transportation Statistics (BTS)
“The current downturn is reminiscent of the challenges faced during the 2008 financial crisis, but it has not yet reached the severity of the 2001 downturn.” — Industry Analysts
This prolonged downturn underscores the need for strategic action to reduce overcapacity and stimulate demand. Collaboration between policymakers and industry leaders is essential to safeguard the trucking workforce and ensure the sector’s long-term viability.
Sources:
https://time.com/6313178/trucking-bubble-has-burst/