Trucking Capacity Remains Low Amid Rising Costs and Legal Challenges
The U.S. freight market continues to face significant capacity constraints, with trucking capacity that left the industry over the past four years showing little sign of returning. Ben Kavlinar, EVP of Operations at LRT Solutions, highlighted rising equipment costs, nuclear jury verdicts against carriers, and soaring insurance premiums as key barriers preventing new entrants from joining the market. Kavlinar noted these challenges are compounding existing supply constraints even before a meaningful volume rebound occurs. Tender rejections remain elevated near 15%, reflecting ongoing tightness in capacity despite recent seasonal softness during July and August. LRT Solutions is leveraging this environment to strengthen relationships with shippers, emphasizing service quality as the primary differentiator. The freight market has been described as emerging from a four-year "freight recession." Kavlinar expects activity levels to rise over time due to persistent structural supply constraints and increasing entry costs for new carriers.
Topics: freight recession insurance costs market entry barriers trucking capacity