The abrupt closure of Illinois-based trucking company Midwest Transport Inc. which left over 480 drivers suddenly out of work, left many questioning the position of the trucking industry.
The closure is just the latest in a string of companies that have shuttered its doors over the past two years. Analyzing data from the Federal Motor Carriers Association (FMCSA), TruckInfo.net found a net contraction of nearly 10,000 motor carriers in the first half of 2024 alone.
The freight market is typically a leading indicator of the general economy
Research by the Bureau of Transportation Statistics shows that dips in the freight market typically precede dips in the general economy.
While the industry hopes for a recovery, historical trends suggest this is likely the new normal
After peaking in May 2022, the freight market for long-distance trucking steadily declined for 12 months before flatlining the past year. Many in the industry are hoping the market “recovers” to 2022 levels but based on historical metrics, it seems unlikely.
More closures are likely on the way
Despite 33,000 fewer motor carriers operating since the 2022 peak, the industry still has over 64,000 more carriers than before the pre-COVID boom. With the market flatlining, there’s likely still excess capacity to shed.
The South has been most impacted in terms of closures
The South has been hit hardest by these closures, with Louisiana, Mississippi, Georgia and Alabama all experiencing contractions of over 5% in the first half of 2024. While Southern states saw the biggest contractions, only five states – Idaho, Oregon, New Hampshire, Vermont and Indiana – experienced any expansion in motor carriers during the same period.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
