FMCSA Operating Data Shows Capacity Decrease In Q3
Data from the Federal Motor Carrier Safety Administration indicates that trucking capacity in the industry decreased in Q3, moving closer to equilibrium. During this period, the loss of operating authority outpaced new entrants and reinstatements, though the rate of exits from the market has become less severe in recent months.
Overall, a reduction in capacity has prevailed since October 2022, as indicated by FMCSA operating authority data. However, there were interruptions in the trend of carrier exits in March 2023 and again in March and August of this year, suggesting a movement toward equilibrium.
Image: Trucking company exits, additions, and the net change.
The current decline in carrier population is likely to continue for an extended period. As of the end of September, the market still had over 92,000 authorized trucking firms, representing a 36% increase compared to February 2020.
The FMCSA operating authority data does not indicate the number of truckers within each company, which can obscure the overall fluctuations in the market. Industry leaders are also considering other factors such as the impact of International Roadcheck, seasonal demand indicators, and spot rate variations to gain a fuller understanding.