We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Truckload carrier predicts challenging year ahead for industry

Truckload carrier predicts challenging year ahead for industry

Reduced capacity, higher driver pay, and increasing spot rates are on the horizon as pandemic problems, economic uncertainty linger, according to report.

Industry forecast calls for challenging year ahead
January 21, 2021
DC Velocity Staff
No Comments

Lingering effects of the coronavirus pandemic, a slate of new government policies, and ongoing economic uncertainty will deliver a challenging year for the trucking industry in 2021, according to an economic forecast from truckload carrier U.S. Xpress Enterprises, released this week.

Top on the list of challenges is a continued reduction in truckload capacity, which the company says will be driven in large part by a dearth of drivers as 2021 gets underway. Reduced commercial driver’s license (CDL) training and the launch of the Drug and Alcohol Clearinghouse last year has resulted in nearly 200,000 fewer drivers in the industry, the company said. A new round of stimulus dollars could compound the problem by keeping drivers from starting a career or coming back to the trucking industry—factors that may also contribute to driver pay increases, they said.

Contact and spot rates are likely to climb in 2021 as well. The combination of fewer drivers, a continued increase in freight demand, and reduced capacity will spur contract rate increases of between 8% and 15%, they said, while spot rates are likely to trend upward though the fall.

Ramped up government spending will also have an effect, as Democrat control of the Presidency and Congress ushers in a slate of new policy goals, including unemployment spending, insurance initiatives, and infrastructure plans. 

“Additional unemployment assistance and stimulus dollars will stimulate consumption (and bolster freight volumes) while sidelining drivers from returning to the labor market,” according to the forecast. “A proposed increase in mandatory insurance minimums for carriers could drive many smaller players out of business. Additionally, the new administration is planning a bold infrastructure program which will spur a slew of construction projects across the country that could induce drivers to leave the labor market for jobs closer to home. These factors could have long term ramifications impacting demand into 2022 and beyond.”

The forecasters predict slow economic growth overall early in 2021 leading to a steady recovery into the second half of the year. 

“The coronavirus pandemic continues to impact our industry in ways we couldn’t have imagined a year ago, and those challenges will reverberate throughout 2021,” Eric Fuller, U.S. Xpress President and CEO, said in a statement announcing the forecast. “I’m proud of our men and women who have been on the front lines, delivering essential goods throughout this pandemic. This will continue to be a challenging year, but I’m confident it will end on a positive note.”

Transportation Truckload
KEYWORDS U.S. Xpress Enterprises
    • Related Articles

      Port of LA to launch incentive program encouraging faster truck turnaround times

      Werner invests in autonomous trucking firm TuSimple

      Biden names dozens of senior leaders to DOT, including FMCSA and FRA

    Recent Articles by DC Velocity Staff

    Combilift celebrates 25 years of making lift trucks

    ACT: trucking volume spike in August hints at turning point in the freight cycle

    Kuehne+Nagel and Capgemini create supply chain orchestration service

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • U.S. manufacturing resurgence faces headwinds

    • InPerson interview: Geoff Muessig of Pitt Ohio

    • Warehouse yards to go digital

    • BNSF retires locomotive used for testing alternative fuels

    • Fulfilling commitments

    Now Playing on DCV-TV

    20230922intralox vs large

    Intralox Parcel Automation: Never Stop Moving

    DCV-TV 4: Viewer Contributed
    Your business—and the flow of products through it—never stops. Intralox’s logistics and material handling specialists have the technologies, services, and expertise to keep you moving.

    FEATURED WHITE PAPERS

    • Rodent Radar: A Guide To Help Protect Your Business From Rodents

    • The Value of Genuine Parts and Service

    • Five questions to ask before electrifying your indoor forklift fleet

    • Unlock Success with Our Freight Tech Checklist!

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing