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Trucking Capacity Tightens Further in July as Carriers Boost Utilization

Transportation capacity contracted at an accelerated pace in July, marking the second-fastest decline in a decade, according to the Logistics Managers' Index. Pricing remained elevated despite moderating growth from June levels.

Regulatory crackdowns on unsafe drivers have constrained truckload supply, while major carriers prioritize asset efficiency over fleet expansion. Werner Enterprises restructured its one-way operations in February, divesting unprofitable lanes and underutilized equipment. The Nebraska-based carrier achieved 28% year-over-year growth in revenue per truck weekly and improved its TL segment operating ratio by 270 basis points to 94.

Transportation utilization dropped 9.7 points from June to 65 but remained historically elevated. Tender rejection rates signal persistent capacity tightness, with booking lead times increasing. Pricing grew at a slightly slower pace than June while maintaining robust expansionary levels.