"To start, we're in a challenging freight environment where there is deflationary price pressure for an industry that continues to face inflationary cost pressures," President Shelley Simpson told investors in a post-earnings conference call.

Cargo demand has been softening as consumers spend more money on services than goods. Inflation and soaring credit card rates also hurt consumer demand. We recently asked: Is a second trucking bloodbath on the horizon? 

According to Bloomberg, the latest data from American Trucking Association shows the truck tonnage index dropped 5.4% in March versus February, the largest decline since Aug. 2012. 

"Falling home construction, decreasing factory output and soft retail sales all hurt contract freight tonnage," said Bob Costello, chief economist for the ATA.

"The freight market is one of the most volatile markets on the planet. Hot markets can turn ice cold in a flash, particularly after the federal government and central bankers flooded our economy with so much liquidity and then proceeded to institute the fastest monetary tightening cycle in history," supply chain data firm FreightWaves said. 

FreightWaves pointed out, "The freight market downturn is a thing of the past. The freight recession has come, and carriers, regardless of whether they operate in the contract or spot markets, are having to contend with it." 

FreightWaves' data also shows spot rates of truck hauls have plunged over the last 12 months, tender volumes are sliding, and there's a trucking overcapacity issue.