Capacity squeeze and regulatory crackdowns point to durable trucking recovery

An unprecedented supply squeeze driven by regulatory crackdowns, mounting broker liability, and prolonged market attrition is laying the groundwork for a more stable and durable freight recovery, according to Knight-Swift Transportation (CCJ Top 250, No. 3) Chief Executive Adam Miller.

Miller told attendees at the WEX OTR Summit in Ponte Vedra, Fla., this week that despite sluggish consumer demand, national load rejections have climbed to 11% to 12%—levels rarely seen outside the height of the 2021 pandemic peak.

“We’ve really never seen a market where rejections went up with demand down," he said. "I’ve never seen it in the 24 years I’ve been in trucking. We’re in somewhat uncharted territory.”

The dynamic is departure from past freight upcycles that were traditionally triggered by surges in consumer spending. Instead, now, capacity is draining from the market due to aggressive regulatory actions, strict enforcement, and soaring operational expenses.

This story was originally published by CCJ. Read the full story at CCJ →