Demand, Not Capacity, Drives Freight Market
Update: 2025-11-18
Description
Capacity exits in the trucking industry may temporarily tighten the spot market and boost rates, but these gains are often short-lived. Demand, however, is a structural force that can sustainably drive freight rates up. The COVID-19 freight boom illustrates this, as it was demand, not capacity exits, that led to lasting rate increases. Looking ahead, removing drivers from the market may not fix the market long-term unless demand rises simultaneously.
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