by Kim Souza (ksouza@talkbusiness.net)

The less-than-truckload (LTL) market is faring better but still has freight volumes below pre-pandemic levels, according to Jason Miller, logistics professor at Michigan State University, who took part in a Journal of Commerce webcast on Oct. 24.

He also said the over-the-road full-truckload market is soft at best with October spot rates down a bit from a year ago.

Miller said the earliest he sees a recovery taking shape is last in the first quarter or early in the second quarter of 2025. He said a weaker global economy does not bode well for exports and despite the higher container volume coming into the U.S. this year, there has not been an uptick in freight demand large enough to move the needle.

Freight recession likely to continue into early 2025

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/