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Carrier Failures Sped Up in 4Q
Monday, 01 February 2010 00:00

Trucking company failures accelerated in the fourth quarter of 2009 and will continue to rise this year as fleets in the worst financial shape run out of cash and creditors run out of patience with them, a new Avondale Partners report said.

A total of 445 fleets failed in the fourth quarter, compared with 375 in the year-earlier period and 405 in the third quarter of 2009, the report said.

The failures meant a total of 21,010 trucks were removed from service.

The latest total was nearly double the 10,625 trucks removed in the 2008 quarter, when the average was 28, the report noted.

The failure rate will jump in the first quarter as lenders tighten credit standards, Avondale Analyst Donald Broughton said in the report.

“Lenders have to take down some of the worst of the portfolio to prove they are taking care of the rest of it,” he said.

Light & Medium Truck, 2/1/2010