Shippers that used Celadon for US-Mexican freight will find fewer competitors in cross-border lanes. Truckload carriers US Truck, US Xpress, and Covenant Transport ended service to the Mexican interior this year. That’s creating more opportunity for companies such as Werner Enterprises, CFI, and Swift Transportation. “This is becoming a trend now,” said Ryley.
PAM Transport could also benefit because of its auto exposure. “The major motor carriers haul for all the Fortune 100 companies, so they’ll pick up a few extra loads on a weekly basis and the rest will fall into the market and be quickly covered by small carriers,” Dunn said.
US shippers engaged in cross-border trade may temporarily face higher rates for direct service, or they may transload more freight in Laredo, Texas, the largest US border crossing. However, the impact on overall truck capacity in the US from the Celadon shutdown will be negligible.
Stephen Silverman, a retired trucking executive who ran Raven Transport for more than 30 years, said the Celadon bankruptcy won’t have as much impact as some might think. “Those drivers are going to find homes,” he said. “Those trucks are going to be sold to somebody in the used truck market, even if that takes a little longer to happen.”
continued...