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Monday, July 25, 2022

What trucking tells us about the economy, drop-off in rates could cause shakeout for smaller operators

Sky-high freight rates are falling, pinching truckers' income. And that tells an important story about what's going on in the economy overall... Why it matters: Nearly every good consumed in the U.S. is put on a truck at some point. Right now, there are hints of a slowdown in demand.

The drop-off in freight rates may be a good sign for inflation (though fuel prices remain high). The slump could cause a shakeout in smaller truck operators facing a collapse in revenue.