Core Insights - The trucking industry is experiencing significant challenges due to increased operating costs, flat rates, and reduced freight volumes, creating a "perfect storm" for carriers [1][2]. Cost Pressures - Carriers are under pressure from shippers to lower rates, leading to margin compression as expenses rise while revenue remains stagnant [2][3]. - Insurance costs are a major contributor to rising expenses, with average truck insurance premiums increasing for the fifth consecutive year, reaching a record high of $10.2 per mile in 2024, a 3% increase from the previous year [4]. - The upward trend in insurance costs is expected to continue, with a reported 5.8% year-over-year increase in Q1 2025 [4][5]. Labor Market Dynamics - Truck transportation wages have been steadily increasing, with average hourly earnings surpassing $30 per hour over the last year, and total driver compensation rising nearly 3% in 2024 compared to 2023 [6]. - Companies are offering sign-on bonuses and other incentives to attract and retain drivers, as competition for talent remains fierce [7]. Equipment Costs - The costs associated with truck and trailer payments have risen by 8.3% from 2023 to 2024, and have increased by 52.3% since 2019, indicating a significant upheaval in this cost category [8].