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Florida’s trucking industry, a vital cog in the state’s economy, is currently experiencing a significant downturn.
The Florida Motor Carriers Safety Association has reported a notable decrease in the number of truckers and freight brokers this year, a trend echoing the shifts in consumer behavior post-COVID.
During the pandemic’s peak years from 2019 to 2022, the industry thrived as online shopping surged, creating a high demand for truck drivers and freight brokers. These middlemen, crucial in connecting shippers with carriers, were once the backbone of a booming logistics sector. However, with the decline in online shopping and overall consumer spending, the industry is facing what Alix Miller, the president and CEO of the Florida Trucking Association, describes as a “freight recession.”
This downturn is also reflected in the decreased enrollment in commercial truck driving training schools across the Treasure Coast and beyond.
The economic slowdown and shrinking industry have made truck driving less appealing, impacting educational institutions catering to future drivers.
There has been a 10.6% decrease in Florida freight broker and carrier permits in 2023, a stark contrast to the increasing numbers in the previous years. From issuing 1,571 permits in 2019 to a peak of 2,669 in 2022, the number dropped to 2,386 by the end of October 2023. This decline is significant, considering Florida had the second-highest percentage change in broker permits in the U.S.
Motor carrier permits in Florida decreased by 13.75% this year, indicating a broader industry trend. The sudden rise in e-commerce during the pandemic led to a shift toward “spot markets,” where short-term contracts were more prevalent due to the overwhelming demand. This situation encouraged many to enter the trucking industry, either as drivers or by starting small freight companies.
However, people are increasingly spending their money on experiences rather than goods, leading to a decreased need for freight services. Shane Black, a freight broker, reflects on these changes and the challenges they bring to the industry. The decline in demand, coupled with decreased freight rates and rising fuel costs, has led to a market crash, as described by Uber Freight CEO Lior Ron.
As the industry grapples with these changes, there is hope that it will balance out in the coming months. The industry’s current state, as Miller hopes, might be a return to pre-pandemic normalcy, adjusting to reduced demand and stabilizing the market.
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