A recent Bloomberg Intelligence and Truckstop survey that polled owner-operators and small fleets found that sentiment among North American carriers operating in the truckload spot market has improved over the past three months.
However, some concerns still linger.
“The industry is emerging from a challenging quarter, and the improved sentiment coupled with Truckstop's rising Market Demand Index suggests rates may move higher from here,” explained 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.”
Highlights of the Q1 2024 Truckload survey showed:
- Demand remained under strain in Q1: Despite 62 percent of carriers reporting lower freight volume in the first quarter, 33 percent predicted freight demand would increase in the next three to six months. Only 19 percent predicted freight demand to decline in the same timeframe, which represents a 12-point percentage decline vs. the 2023 Q4 survey.
- Encouraging signs that the market may be starting to improve: The survey revealed that a majority of carriers believe better times are around the corner, with Truckstop's Market Demand Index up nine percent in Q1 from last year, the first year-over-year gain after seven quarterly declines. Only 26 percent expected rates to decline over the next three to six months, which is six percentage points less than in the Q4 survey. Some percent of those surveyed said they see rates rising, which is six percentage points more than in Q4.
- Carriers uncertain about their futures: A total of 44 percent of the respondents said they were unsure about their status in six months, and nine percent said they wanted to leave the trucking industry. More than three-quarters of respondents (78 percent) said that higher interest rates in Q1 affected their businesses. Elevated rates can have a significant impact on equipment-financing expenses, with 19 percent citing increased costs as the main reason they are not replacing or adding tractors. Though demand was challenging for carriers in the first quarter, with loads dropping an average of 10 percent, that was slightly better than the 13 percent decline seen in Q4 of 2023.
“We’re all eagerly anticipating a more positive shift in the tide,” said Kendra Tucker, the Chief Executive Officer of Truckstop. “Truckstop continues to be a trusted partner, committed to delivering innovative solutions to help carriers navigate this ever-evolving business landscape."
The Bloomberg and Truckstop survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 225 respondents, consisting of dry-van, flatbed, temperature-controlled, specialized/diversified, hot-shot, and step-deck carriers. Of the respondents, 45 percent indicated that they operate just one tractor.
Truckstop is a partner for carriers, brokers, and shippers, empowering the freight community through a platform of innovative solutions for the entire freight lifecycle to increase efficiency, automate processes, and accelerate growth. Company information is available at www.truckstop.com.
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