BOISE, Idaho — Carriers are showing some optimism about freight rates, according to the latest Bloomberg | Truckstop survey.
The survey, which polled owner-operators and small fleets, revealed sentiment among North American carriers operating in the truckload spot market has improved over the past three months — but some concerns still linger.
“The industry is emerging from a challenging quarter, and the improved sentiment coupled with Truckstop’s rising Market Demand Index suggest rates may move higher from here,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “The direction of rates will be driven by supply-side factors as the industry remains flush with capacity.”
The Bloomberg | Truckstop 1Q24 Truckload Survey shows:
• Demand remained under strain in 1Q: Despite 62% of carriers reporting lower freight volume in 1Q, 33% predict freight demand to increase in the next three to six months. Only 19% predict freight demand to decline in the same timeframe, which represents a 12-point percentage decline vs. the 4Q survey.
• Encouraging signs the market may be starting to improve: The survey revealed a majority of carriers believe better times are around the corner, with Truckstop’s Market Demand Index up 9% in 1Q from last year. This represents the first year-over-year gain after seven quarterly declines. Only 26% of respondents expect rates to decline over the next three to six months, 6 percentage points less than in the 4Q survey, while 28% see rates rising — 6 percentage points more than in 4Q.
• Carriers uncertain about their futures: Forty-four percent of respondents were unsure about their status in six months, and 9% said they wanted to leave the trucking industry. More than three-quarters of respondents (78%) said higher interest rates in 1Q affected their businesses. Elevated rates can have a significant impact on equipment-financing expenses, with 19% of respondents citing increased costs as the main reason they’re not replacing or adding tractors. Though demand was challenging for carriers in 1Q, with loads dropping an average of 10%, that was slightly better than the 13% decline in 4Q.
“We’re all eagerly anticipating a more positive shift in the tide,” said Kendra Tucker, CEO of Truckstop. “Truckstop continues to be a trusted partner, committed to delivering innovative solutions to help carriers navigate this ever-evolving business landscape.”
Linda Garner-Bunch has been in publishing for more than 30 years. You name it, Linda has written about it. She has served as an editor for a group of national do-it-yourself publications and has coordinated the real estate section of Arkansas’ only statewide newspaper, in addition to working on a variety of niche publications ranging from bridal magazines to high-school sports previews and everything in between. She is also an experienced photographer and copy editor who enjoys telling the stories of the “Knights of the Highway,” as she calls our nation’s truck drivers.
