A recent survey by Transport Capital Partners (TCP) shows three-quarters of carriers expecting lower utilization with the new Hours of Service regulations.
An expectation of capacity tightening comes as carriers report how they will respond to new HOS regulations taking effect on July 1. The way their shippers work to minimize the impact of these changes will also affect this lowering utilization.
Almost 40 percent of carriers surveyed expect utilization to lower more than 5 percent; just over 38 percent expect under a 5 percent change; only 3 percent expect no impact; and, almost 19 percent have still not determined the full impact of these new regulations.
“This potential reduction in truck capacity is hitting at the same time as spot rates are climbing, reflecting a stronger demand in June. Rates will likely increase further in the months ahead,” noted Richard Mikes, TCP Partner.
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