The trucking industry has experienced some wild fluctuations in the past four years. One of the most telling signs is the number of new carrier registrations reported by the U.S. Department of Transportation (USDOT) since the onset of the COVID-19 pandemic in 2020.
As those of us who have been in the industry for a while know, freight spot rates reached record highs in early 2022 — only to fall to current lows that make profitable operation nearly impossible.
When freight rates are high, running profitably is much easier. Because of this, the number of registered carriers leapt upward in 2022 as drivers bought trucks and registered for their own operating authority.
In 2020, the Federal Motor Carrier Safety Administration (FMCSA) reported 291,705 registered carriers. That number climbed 27.2% in 2021 as more than 79,000 new carriers were registered. The following year saw another increase that tapered off in the second half as another 21,021 carriers were registered.
Predictably, as freight rates plummeted in 2022, authority revocations rose. The smaller increase in 2022 turned into a decline of 6.3% in 2023 as more than 24,600 carriers left the business. So far in 2024, another 7,500 carriers are gone as of the end of May, a further decrease of 2%.
Knowledge is power.
If you’re considering starting (or ending) your own trucking company, would this type of information help you make better decisions? While you can always turn to quality media outlets like The Trucker for information, the fact is that statistics like this are available to you any time.
The Federal Motor Carrier Safety Administration website offers Analysis & Information Online. Scrolling down the page, you can select “Registration Statistics Custom Reports” and simply pick the parameters you want to look up.
Many larger carriers use this type of information in planning their operating strategies for upcoming months and years. Some of those carriers also purchase subscriptions to reports from different analytical firms to get industry forecasts from some of the most knowledgeable people in the business. However, much of the information they receive is available to you, if you know where to look.
Before you visit any website, however, here’s a tip:
Look for the word “Blog.” Frequently, it’s found under the “Resources” tab. Many websites offer articles on all kinds of subjects related to your trucking business — at no charge. Some sites also offer free email subscriptions that can help keep you informed of news and upcoming changes.
Where can I find this knowledge?
There are many sources available to members of the trucking industry. For example, load boards often offer more than just loads.
DAT Freight and Analytics runs the largest load board in the country; many small carriers use the board to obtain spot loads. But the company offers so much more information! An affordable subscription is required for some data, but the company publishes a weekly “Trendlines” report that highlights changes in freight rates, numbers of loads and trucks posted and more, with comparisons to the previous week, month and the same month of the prior year. National average spot rates are provided, and the data can be broken down by region.
If you are a user of DAT’s load board, additional data is available to you, and you can access even more through subscription. DAT’s blog section has some great articles on starting and running a trucking business.
Truckstop.com has an excellent array of information offerings that available with just a click — including their own blog section with an outstanding selection of articles on topics ranging from new rules and regulations to tried and true business principles. There are also webinars and podcasts available.
ATBS offers tax and accounting services as well as trucking business consulting and more. Their “Knowledge Hub” is chock full of blog entries offering advice on a variety of industry issues, in addition to free tools for calculating your tax deductions and per diem, and even how to obtain your own authority. You’ll find educational videos and inexpensive materials and courses you can purchase.
Larger carriers often use the services of industry forecasters to help them prepare for changes in the economy or the industry. These forecasters often publish blogs that contain information that could be valuable to your trucking business. The most detailed information is usually reserved for paid subscribers, but you can identify industry trends and potential problems with the free information provided.
ACT Research publishes multiple blog postings each month dealing with truck and trailer sales statistics, freight rate trends and more. Like other providers of analytics, the most detailed information is reserved for subscribers, but a lot of information on trends in the industry is available for the reading.
Cass Information Systems offers a variety of carrier services, but their free “Cass Transportation Indexes” provide a monthly overview of trucking industry trends. Each month, the Cass report compares shipment numbers and expenses with the prior month, a year ago and two years ago. The report offers freight expectations for the coming months as well. You can access the report from their website or sign up to have it emailed to you each month.
FTR Transportation Intelligence is another such resource that teams with Truckstop.com to offer a complimentary weekly update on the spot freight market. A free email subscription is available, and a free weekly podcast updating multiple industry topics is also available on their website or through multiple music apps.
The federal government also provides numerous resources.
Federal agencies like the USDOT, FMCSA, Federal Highway Administration (FHWA) and more than 400 other agencies are required by law to post proposed policy changes, new rules and other information in the Federal Register. By clicking on “My FR,” you can sign up for a subscription that will provide you with a daily update of new items. You’ll be among the first to know about proposed rule changes or new regulations that impact your business.
These resources and others are easily available online and most offer subscriptions that put their latest reports in your inbox as they are released. Managing your trucking business isn’t easy, but you don’t have to be a large carrier or have big carrier resources to stay informed.
And, of course, us folks at The Trucker always do our best to keep you up to date on the latest industry news and information.
Cliff Abbott is an experienced commercial vehicle driver and owner-operator who still holds a CDL in his home state of Alabama. In nearly 40 years in trucking, he’s been an instructor and trainer and has managed safety and recruiting operations for several carriers. Having never lost his love of the road, Cliff has written a book and hundreds of songs and has been writing for The Trucker for more than a decade.
