Sentiment among North American carriers operating in the truckload spot market has improved over the past three months, but some concerns still linger, according to a survey from Bloomberg and Truckstop which polled owner-operators and small fleets.
The survey covered a sample size of 225, consisting of dry-van, flatbed, temperature-controlled and specialized/diversified, hot-shot, and step-deck carriers. Of the respondents, 45% operate just one tractor.
“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,” Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence, said in a release. “The direction of rates will be driven by supply-side factors as the industry remains flush with capacity.”
In other results, the “Bloomberg | Truckstop 1Q24 Truckload Survey” showed that demand remained under strain in the first quarter of 2024. Despite 62% of carriers reporting lower freight volume in 1Q, 33% predict freight demand to increase in the next 3-6 months. Only 19% predict freight demand to decline in the same timeframe, which represents a 12-point percentage decline vs. the 4Q survey.
In the face of those challenges, the survey revealed that a majority of carriers believe better times are around the corner, with Truckstop's Market Demand Index up 9% in 1Q from last year, the first year-over-year gain after seven quarterly declines. Only 26% expect rates to decline over the next 3-6 months, 6 percentage points less than in the 4Q survey, while 28% see rates rising, which is 6 percentage points more than in 4Q.
Despite that optimism about the future, current conditions remain so tough that 44% of respondents were unsure about their status in six months and 9% said they wanted to leave the trucking industry, citing the pressures of high interest rates and drooping demand for loads.
