Industry Update: Truck Transportation Summer 2022
Carrier operating costs are past their peak as the price of Diesel has declined for the better part of two months, and it seems like ages ago when the driver shortage was the number one industry challenge. Judging by the solid 2nd quarter earnings reports of the public carriers, contract freight also seems to be holding up quite well. Nonetheless, although it may take a few more months for the NBER to formally announce the start of a recession, the conversation has quickly pivoted from inflation, where prices for energy and many commodities have rolled over, to slowing macro growth and, by extension, freight growth. That said, the fortunes of truck carriers are not homogenous in the same way that other industries are whipped around by the ebbs and flows of specific commodities. While there are few places to hide during a severe recession, depending on their geographic location, freight segment, market (spot v. contract), and customer exposures, some carriers are faring much better than others.