More carriers are exiting the market as excess capacity keeps rates low

We’ve heard many times over the last few weeks and months that the spot and contract markets have either reached bottom or are starting to tick up off the bottom, but even slightly higher than the bottom isn’t anywhere you want to be.

Resilient consumer spending and import activity have helped push rates off the floor as we head into peak season. Spot rates appear to have bottomed out in Q2 but are expected to remain near the bottom in Q3.

Joining Jason and Matt this week is Mazen Danaf, Uber Freight’s senior economist, and he says excess capacity – and how long it’s been able to hang on in this tough environment – has helped keep rates down.

00:00 Spot and contract markets

01:24 Excess capacity

02:58 COVID’s impact on trucking employment

05:18 Balancing the market