Truckload carriers cut approved carrier list to 14,000 as capacity exodus continues
Truckload carriers reduced their approved carrier lists to 14,000 from a peak of 60,000, executives said at an investor conference this week. Filter said there aren’t 100,000 carriers he considers safe enough to operate on the road.
The broker liability ruling handed down by the Supreme Court a year ago has forced brokers and shippers to vet carriers more strictly, contributing to the shrinkage of approved lists. A Texas Supreme Court case involving Home Depot determined that retailers meet liability obligations by hiring reputable carriers, reinforcing the trend toward stricter partner selection. Regulatory pressure on sham driver schools and ELD oversight has further limited the influx of new operators, while diesel price spikes have strained small fleets. Filter noted that the forced closure of sham driver schools has narrowed the entry point for new carriers, ensuring only those with proper training can obtain authority.
“I can tell you that there aren’t 100,000 carriers out there that I think any of us would be able to look at and say, 100,000 carriers are safe and should be out there on the road,” Jim Filter, President and CEO, Schneider National said.
“Well, with the amount of supply that has exited, it has created enough demand for our services,” Jim Filter, President and CEO, Schneider National said.
The truckload capacity correction is still in the “early innings,” carrier executives said at an investor conference this week. A regulatory crackdown launched a year ago compounded the impact of prolonged economic weakness, which had already forced numerous small and midsize fleets out of the industry. The recent surge in diesel fuel prices has further plagued small operators, many of whom don’t have recovery mechanisms in place.
What we know
Schneider’s brokerage unit has culled its approved carrier list to just 14,000 from 60,000 at the peak.
There aren’t 100,000 carriers out there that I think any of us would be able to look at and say, 100,000 carriers are safe and should be out there on the road.
Werner said demand among its mostly discount-retail and food-and-beverage customer base has remained steady from the second quarter to the third quarter.
The Supreme Court’s broker liability ruling adds another gating factor on capacity, requiring both brokers and shippers to more carefully select their transportation partners.
Werner’s management team cited a recent Texas Supreme Court ruling involving Home Depot (NYSE: HD).