Trucking news and briefs for Thursday, May 9, 2024:
A new survey conducted by Bloomberg and the Truckstop load board, which polled owner-operators and small fleets, found sentiment among 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."
Despite 62% of carriers reporting lower freight volume in the first quarter, 33% predicted freight demand to increase in the next 3-6 months, the survey found. Only 19% predicted freight demand would decline in the same timeframe, which represents a 12-percentage-point decline compared to the fourth-quarter survey.
The survey also revealed that a majority of carriers believe better times are around the corner with Truckstop's Market Demand Index up 9% in Q1 from last year, the first year-over-year gain after seven quarterly declines. Only 26% expect rates to decline over the next three to six months, six percentage points less than in the Q4 survey, while 28% see rates rising, which is six percentage points more than in Q4.
[Related: Carrier failures declining but still elevated]
Looking at their own businesses, however, 44% 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 Q1 affected their businesses.
