Donald Trump's re-election, Republican control of Congress, and the end of Chevron deference ensure the relaxing of climate-related federal regulatory directives while canceling any thoughts of a near-term federally mandated transition to zero-emission commercial vehicles. Other issues that touch the trucking industry, including repeal of the century-old Federal Excise Tax on heavy-duty truck sales, tort reform addressing "nuclear verdicts," and AB5-like attacks on the independent contractor model, are likely in focus for the new administration. In the meantime, for-hire carriers continue to grapple with the dual challenges of excess capacity and a sideways freight environment. The over-capacity condition is nudging in a healthy direction, with private fleet expansion long in the tooth and the weakest for-hire carriers still leaving the market. On the demand side, consumer goods spending remains resilient, and with a few Fed cuts in hand and election uncertainty removed, a gradually improving backdrop for trucking should be the setup at the outset of 2025.
Industry Update: Truck Transportation Fall 2024
