Volatile spot market is forcing owner-operators to struggle
Overall, small fleets and owner-operators may struggle to live off of the current spot market due to market volatility, competition, capacity imbalances, lack of bargaining power, and economic uncertainty. These challenges can make it difficult for them to maintain profitability and remain in business.
: The spot market can be highly volatile, with prices fluctuating rapidly in response to changes in supply and demand. Small fleets and owner-operators may find it difficult to manage their expenses and maintain profitability when prices are unpredictable. It is also highly competitive, with many players vying for the same loads. This can lead to downward pressure on prices, making it difficult for small fleets and owner-operators to secure profitable loads. Capacity imbalances, where there are more trucks than available loads, can lead to oversupply and lower prices. Small fleets and owner-operators may struggle to find profitable loads during periods of oversupply. Additionally, small fleets and owner-operators may have less bargaining power compared to larger carriers, making it difficult to negotiate favorable rates with shippers and brokers.
In a significant ruling, a federal judge in California rejected a challenge against the state's independent contractor law, AB5, from the trucking industry.