Unprecedented Freight Recession Shakes History
The freight recession currently impacting the trucking industry is unlike any other in history due to the significant role played by freight brokerages. Over the past two decades, freight brokerages have grown from representing just 6% of the market to handling more than 20% of all trucking freight. They have reshaped the typical freight cycle by offering a more compelling product than asset-based carriers, leading to multiple brokerages being in primary positions in shippers' routing guides. This has benefited small carriers, who rely on brokerages for leads and business. However, the current recession has been slower to purge capacity due to the proliferation of freight brokers, who have maintained load volumes even as rates fall. It is predicted that it will take approximately 78 weeks for the market to reach a balance between supply and demand.
