overcapacity
/ˌoʊvərkəˈpæsɪti/
Definition
A state in which there is more supply of a service—in this case, freight transportation—than there is demand from customers.
Etymology
The word combines the prefix 'over-' (meaning excessive) and 'capacity' (from the Latin 'capacitas,' meaning ability to contain). It entered common English usage in the industrial era to describe economic situations where production potential exceeds market needs.
In the news
In the article, the author highlights freight overcapacity as a key economic risk that could decrease demand for new trucks and pressure PACCAR’s earnings. It serves as a warning of potential market saturation that could hinder the company's growth.
Does Dividend And Emissions Software Update Shift PACCAR’s Technology-Led Earnings Story (PCAR)?
Read the full article ↗simplywall.st