According to a report by Business Insider, capacity, meaning the number of trucks available to move loads, was up by 29.9% in June year-over-year. Last year was particularly profitable for truckers, and it encouraged lots of companies to buy more trucks and hire more drivers. Companies ordered so many new trucks last year that by January there was still an eight-month backlog of new truck orders. Industry insiders told Morgan Stanley in a survey that they expected some of this capacity to go away too. That means more companies going bankrupt or scaling back business. There are some positive indicators, though; the trucking industry has generated 11,700 jobs in 2019, including 7,300 in the second quarter. But for some reason, this job growth is not translating into confidence or optimism in the trucking industry.
Freight rates have dipped year-over-year for six months straight while loads on the spot market, in which retailers and manufacturers buy trucking capacity as they need it, rather than through a contract, fell by 50.3% in June year-over-year. Truckers have also continued to warn of a "bloodbath" as they slash their profit expectations and companies file for bankruptcy.