Lack of investment could shrink trucking capacity

New report says trucking capacity could tighten in 2009

By Dave Hannon -- Purchasing, 9/3/2008 11:14:00 AM

A new report on the trucking industry says that capital investment in the U.S. trucking sector is expected to fall in 2008, which will create an overall decline in trucking capacity heading into 2009.

According to a new report from Global Industry Analysts the slowdown of truck-dependent industries such as housing and automotive in the U.S. has led many trucking firms to scale back on spending this year, which could create tighter trucking capacity when demand comes back.

Market watchers such as Ed Wolfe of Wolfe Research don’t expect a rebound in trucking demand anytime soon. In a note to clients last week, Wolfe said, “We would not be surprised at this point to see ATA truck tonnage follow the recent Domestic Air Cargo Index with a double dip downwards over the next several months, as we approach more difficult comparisons and experience weaker import and export demand.”