U.S. trucking demand drops sharply as retailers wait for more orders

According to data released by FreightWaves , a transportation data company , there has been a sharp decline in demand for truck transportation in the United States since March, which is due to the increase in fuel prices caused by the Russia-Ukraine war.

Although fuel prices have risen, transportation costs for trucks in the United States have actually fallen.

Data shows that in the first quarter of this year, the transportation cost per kilometer for trucks in the United States dropped from US$2.78 to US $2.23, a decrease of 55 cents , and a decrease of about 22 cents compared with the same period last year.

This development trend is worrying. If fuel prices continue to rise , transportation prices continue to fall , and truck demand continues to decline, it will have a serious impact on the US trucking industry.

Data showed that U.S. trucking demand fell 0.3% in March , and retailers will have more orders waiting because goods must be loaded into trucks before they can be shipped.

Currently, the US truck transportation market handles about 1 million pieces of cargo every day, ranging from food to furniture, including various commodities , and its transportation efficiency will be greatly reduced.

According to Deutsche Bank's forecast, U.S. trucking demand will maintain the current trend in the second and third quarters , and may pick up in the fourth quarter due to holiday promotions . However , if fuel prices continue to rise , the U.S. trucking industry will fall into a depression in 2023 , and some small trucking companies will face bankruptcy.

The trucking industry is a key indicator of the U.S. economy .

Reduced demand for trucking means weaker purchasing power for consumers, fewer shipments for companies and slower business activity. Of the 12 trucking recessions since 1972, six were followed by an economic recession , according to an analysis by truck data company Convoy.

At the same time, inflation continues to intensify, causing prices of many categories of products on e-commerce platforms to continue to rise.

Online consumers began to compare multiple e-commerce platforms and choose products with high cost performance. In order not to affect orders, many sellers began to cut profits and reduce prices.

Although the market environment is difficult, sellers must learn to find opportunities in change and develop reasonable response strategies in order to turn the tide.

Trucking in the USA