Trucks to feel pressure from weaker port, rail: ITS

Core Insights - The supply chain is experiencing pressure due to lower import volumes, higher fees, and regulatory changes impacting various sectors [1][2][4] - The international container market's weakness is leading to tighter assessments of accessorial fees as ports aim to maximize revenue during peak seasons [2] - Regulatory changes regarding non-domiciled commercial driver licenses are causing financial strain on carriers, increasing the risk of insolvency [2][3] Industry Impact - The drayage market is facing downward pressure, which could create challenges for shippers in both the short and long term [3] - A federal and state crackdown on non-domiciled CDLs is resulting in a rise in bankruptcies among small- and mid-size carriers, with several major providers ceasing operations [3][4] - The overall financial challenges for companies are expected to worsen in a rate environment that is unfavorable to operating costs, leading to reduced capacity and potential impacts on terminal and port operations [4] Future Outlook - In the near term, new regulations are anticipated to remove capacity from the market, causing disruptions [5] - Long-term effects may drive many carriers out of business due to regulatory pressures and a freight recession that has lowered rates to unsustainable levels [5] - The National Retail Federation projects a decline in U.S. import volumes, with September's volume at 2.12 million TEUs, down from 2.28 million TEUs in August, marking a 6.8% year-over-year decrease [5]