The total flight of the operating authority of the air carriers continued for more than a year.
As of Nov. 1, there were more than 150,000 net shutdowns, Werner Enterprises CEO, President and Chairman Derek Leathers said in earnings call. These figures are based on data from the Federal Motor Carrier Safety Administration and mark 57 weeks where exits were greater than entries.
Leathers noted that the index is not the only measure worth following, but it is part of some encouraging signs in the market, he said.
While owner-operators and others may have complicated the picture at first, data from the past quarter and a half shows more exits, Leathers said.
“Then, you combine that with the brand failures now, not the obvious Yellow that everyone was talking about, but 200 trucks, 400 trucks, 500 truck carriers on a weekly basis is starting to hit the radar that we can’t survive in this price environment. ” he said. “I think if you put all of that together and continue to look at that trend line, it’s closer to balance than people realize.”
Additionally, more and more companies are showing that destocking is largely behind them, Leather said, noting that consumer confidence and attitudes will continue to drive the market.