In Q1 2020, public for-hire TL carrier profitability, at 3.8%, was down compared to Q1 2019, the lowest margin since Q3 2017 — just ahead of the ELD mandate and business tax cuts that simultaneously boosted freight and constrained capacity, ultimately ushering in the period of highest profitability on record. Much like the spot rate market, profit margins reflect the supply-demand balance between freight demand and the supply of capacity. Carrier profits are key determinant of new Class 8 tractor and trailer demand.

Source: ACT Research