by Jeff Della Rosa (JDellaRosa@nwabj.com)

The freight industry is cautiously optimistic this year following a challenging 2023, according to a new report. Still, some industry metrics are signaling the beginnings of a recovery amid a lingering freight recession.

FreightWaves and Trimble recently released the Q1 2024 Carrier Rate Report that highlighted existing market conditions and expectations for the year.

“This new phase is characterized by a market gradually regaining its footing, underscored by positive developments in rate dynamics and broader economic factors,” the report shows. “A critical development in the current landscape is the closing gap between dry van truckload spot and contract rates, to a level of balance not observed since the last holiday season. This trend confirms the progress made toward supply and demand equilibrium.”

Report: Signs of recovery emerge in freight industry

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Peak shipping season is expected to be weak amid high inventory levels and holiday spending uncertainty, a supply chain economist said.

In a recent Project44 webinar, Jason Miller, professor of supply chain management at Michigan State University, said consumers have spending power but are strained. Still, they’ve yet to reach a breaking point.

“The real question is going to be how much gets spent on goods for the holidays versus gets spent on experiences and services,” he said. Miller explained multiple misconceptions in trucking activity, including that “we’ve fallen off a cliff. Now, we are in a freight recession and have been since the third quarter of 2022.”

https://talkbusiness.net/2023/08/economist-highlights-freight-industry-misconceptions-soft-peak-season/