Table of Contents
Highway Digest Trucking News for Week 4 in 2024
Rising Maintenance Costs
The trucking industry is facing increased parts and labor costs due to inflation, despite a decline in truck tonnage and mileage. There’s a total combined increase of 2.5% year over year in parts and labor costs.
Improving Freight Market
ACT Research indicates a recovering freight market with signs of increased freight rates due to stabilizing volumes and contracting capacity. The truckload spot rates are up 12% above the seasonal pattern.
November Trucking Conditions
The FTR’s Trucking Conditions Index improved in November due to falling diesel prices, moving to a near-neutral reading. However, a modestly negative outlook persists for trucking conditions through late 2024.
Impact of Winter Weather
Severe winter weather in the U.S. caused a spike in spot market rates, reflecting the largest gains seen since May.
Market Shift for Shippers and Carriers
The logistics industry is evolving post-COVID, with changing dynamics that require shippers and carriers to adapt for future benefits.
Read the full article on FreightWaves.
Diesel Prices and Truckload Rates
Diesel prices continued to fall, and truckload rates are showing signs of stabilizing, with a narrowing gap between spot and contract van rates.
Positive Outlook for Less-than-Truckload Shipping
Averitt’s survey of shippers indicates a positive sign for the industry with 67% of respondents expecting to move more freight in 2024 compared to 2023.
ATA Tonnage Index
The American Trucking Associations’ For-Hire Truck Tonnage Index increased by 2.1% in December, but the overall tonnage contracted by 1.7% in 2023, making it the worst year since 2020.
Read the full article on ATA.
Freight Market Contraction and Rates
With a smaller number of available trucks, competition for freight is driving rates upward. However, the Motive report suggests a continued depressed freight market with possible stabilization in the second half of 2024.
Challenges Ahead for the Trucking Industry
Analysts predict a challenging year for the industry, with continuing freight shortages, capacity constraints, and a driver shortage, alongside high fuel prices.
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Last modified: January 28, 2024
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