Bankruptcies exacerbate freight woes

Aug 27, 2014 | 04:36 PM | Nathan Laliberte

Tags  freight rates, Donald Broughton, Avondale Partners, Commercial Vehicle Outlook Conference, nonferrous scrap, aluminum, New Century Transporation, Drug Transport/DTI Logistics bankruptcies

NEW YORK — A rash of recent bankruptcies in the trucking industry has shippers concerned that domestic freight rates, which have surged over the past 12 months, could push even higher through year-end.

More than 10,000 trucks were taken off the road in the first quarter as a result of bankruptcies, according to Donald Broughton, chief market strategist at Nashville, Tenn.-based Avondale Partners LLC.

"Companies that were formerly financially stressed have become even more financially stressed and are exiting the industry," Broughton said Aug. 20 at the annual Commercial Vehicle Outlook Conference in Dallas. "It’s bad news for the industry, it’s bad news for capacity and bad news for those business owners who spent lifetimes building those businesses."....

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