10,000 Carriers Close in 2024: Why Trucking Companies are Shuttering
The trucking industry is facing a significant downturn, with nearly 10,000 motor carriers shutting down in the first half of 2024 alone. Factors like rising operational costs, excess capacity, and a stagnant freight market have forced many companies out of business, including notable names like Midwest Transport Inc. and Arnold Transportation Services. While smaller carriers are hit hardest, the closures mark an alarming trend, as the sector struggles to adapt to new economic realities post-COVID. Rising Challenges: Industry-Wide Closures The closure of Midwest Transport Inc., affecting 480 drivers, is just one part of a larger story. A staggering 33,000 fewer motor carriers are operational now compared to the peak in May 2022. Many in the industry hoped for a return to pre-pandemic freight volumes, but historical trends suggest a continued flatlining, with excess capacity still needing to be shed. In fact, the industry still has 64,000 more than before the COVID-19