Unfortunately, spot freight rates have been bouncing along the bottom for so long that smaller carriers — and some larger ones, too — weren’t able to hold on. Those that remain should see market improvement, but analysts say it may be excruciatingly slow.
It’s been tough times in the US freight sector for nearly two years, and the news isn’t getting any better for carriers, even as shippers benefit from the continued fall in rates.
US truckload spot rates and volumes are rising again after settling briefly between hurricanes Helene and Milton, propelled by a storm surge and some seasonal demand.
The trailer order season started weak, “well below expectations,” according to one industry forecaster, causing concerns about the remainder of 2024 and into next year.
Florida’s Tampa Bay-St. Petersburg area is waking up to widespread damage from Hurricane Milton, just as residents, businesses and utilities were recovering from destruction wrought by another big storm just two weeks ago.
With supply chains adjusting to Hurricane Helene-related cleanup in the Southeast and uncertainty over a strike at East Coast and Gulf Coast ports, the total number of loads posted on DAT One increased 14.9% to 2.01 million week over week. That’s the highest number of available loads since Week 29 (July 7-13).
Returning to normal operations may take as long as a month, DHL Global Forwarding said.
Spot truckload rates are surging in the US Southeast and rising nationwide in the wake of Hurricane Helene and ahead of Hurricane Milton, which is expected to hit the Gulf Coast of Florida Wednesday before moving across the state into the Atlantic Ocean.
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Analysts said the freight market could improve in 2025 if more capacity leaves. Still, the market might be approaching an inflection point. In a recent conference call, Jefferies analysts highlighted freight market challenges and the road to recovery.