Lower Volumes; Less Capacity in Trucking

Less-than-truckload capacity has declined in each of the last nine months through November 2008, reports Stifel Nicolaus.

“With Alvan Motor Freight, Inc. and Jevic Transportation failing earlier last year, and with YRC Worldwide’s aggressive downsizing program, it is no surprise that we have seen capacity come out of the LTL industry,” comments analyst John Larkin.

Though rolling stock has come out of the market, all of the terminals and service centers still remain in place, so the LTL capacity reductions aren’t exactly the permanent capacity reductions that we see on the truckload side, he adds.

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