Rich Logistics announced layoffs for roughly 40% of its drivers, and 5 terminals closures in a downsizing of its parent company, Roadrunner Transportation Systems (roughly 10% of its workforce). Relatedly, U.S. Xpress has renegotiated terms with its biggest lender to allow for more leveraged borrowing.
RoadRunner\’s (NYSE: RRTS) share price has dropped to ~37% of its value 1 year ago, U.S. Xpress (NYSE: USX) is at just under half. Spot market rates have fallen 25% since summer 2018, with contract rates lagging slightly behind.
Trucking is a leading economic indicator, and all signs are pointing downward.
What do you think: is a recession far behind?
