Truck capacity reductions reach record for 2008
More grim news on top of falling air and ocean traffic: the amount of truck capacity getting yanked out of the market has reached record levels:
The latest bankruptcy report by investment bank Avondale Partners shows 785 trucking company failures in the third quarter, bringing the total number of companies shutting down in 2008 to 2,690. The rate of failures is almost 50 percent higher than last year’s third quarter. The number of individual trucks exiting the market due to bankruptcies so far in 2008 now tops 127,000, or 6.5 percent of the nation’s capacity.
“If the fourth quarter continues to develop at current pace, 2008 will become the worst year to be a marginal trucker and could be the best year to have survived,” said Avondale Partners managing director Donald Broughton. “If these trends continue, when demand returns it will have an even more powerful impact than it did last cycle and capacity will get very tight, very quick.“
Emphasis ours.
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