Trucking Industry Update | Rates | March 2024
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- Опубликовано: 15 май 2024
- 2023 was a difficult year for trucking companies. It was a great one for shippers though. Spot rates, which have been depressed since 2022, have remained low in 2024.
In this episode of Beyond The Road, we discuss current transportation industry market trends and where we expect things to trend throughout the year.
Topics covered in this episode:
2024 Freight Rates Overview
2024 Truckload Market Projections
Seasonality Discussions Q2 2024
Current State of Load-to-Truck Ratios
Trucking Company Operating Expenses this Year
When Will Freight Rates Rise?
Advice for Shippers in 2024 
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It’s not the shippers who lower the rates, it’s the carriers who keep accepting these rates
ABSO-FKNG-LUTELY 1 MILLION % TRUE ! 😢💀
It's both based on supply and demand. Unfortunately, there is more capacity than freight right now paired with inflation, which is making it extremely difficult for drivers.
Blaming the effect for the cause? Shippers and customers are aware of the current state of the market and if they're looking to cut costs to make up for lower profit and inflation, then naturally they'll gravitate to cutting their shipping budget.
Some carriers have no choice but to accept what they can get especially if they're smaller and can't do the volume bigger carriers do.
yea i meann. thats kind of how it works but shippers dont jus say hey this is what im paying to move the freight. they have a sales dept which negotiates contracts with either a single owner op or a mega carrier....nooow brokers buy tha loads that cant get moved from tha contracts or usually small mom n pop shippers or recievers that just need that one off trucc load...but theres soo many options in carriers companies can play tha field like crazy. only way to get negotiating power is for alot i mean ALLLOOOT of carriers to close shop.
Sometimes I see some lowballer on the load board that I just can’t digest.
It’s a race to the bottom when we all focus on rates. The larger corporations that have the least debt and good financial backing will champion this race, this is a war of attrition amongst trucking companies. Everyone will price lower until the carrier with the deepest pockets is still standing and then has the negotiating power. I believe we are seeing a great purge of smaller carriers. I forecast large carriers with cheap foreign labor and little to no benefits for drivers, there’s only so much overhead you can cut until the bottom guy takes the hit.
We have seen several small carriers falling, but also some very large ones as well. It's a tough market out there and the economy and interest rates make it that much worse. I can tell you that carriers don't want to lower rates for fear of collapsing. These low rates hurt everyone.
Yep 4 illegals in one truck. They can't even tell the feul clerk there truck number.
Looking at the comments, it amazes me that people fail to grasp that some carriers don't have the luxury of not accepting cheap freight and saying no to this freight is not going to change the competitiveness in the industry and the market's current state.
Context matters. I might take a cheap backhaul or a load that gets me to my dedicated runs. You can't just look at a singular load and/or lane.
The best you can do is develop the kind of relationships with brokers, customers, and shippers who will stay loyal to you and your rates even when the market fluctuates. As well as focus on hauling commodities that will always be in demand. Dedicated freight and brokers are your best friends in a rough market, assuming you stick around even when the market is in the carrier's favour.
We appreciate your strategic approach. We agree with the importance of developing good relationships and being strategic with loads hauled. Drivers need to change their strategy in a market like this to remain successful.
My philosophy is this. If brokers already have contracted rates with the shippers it’s the brokers who’s lowering the rates. More profits for the brokers.
Freight rates are driven by demand and capacity. Regardless of a broker being in this equation, the rates are going to fluctuate based on that market demand.
If brokers were regulated to 10% then that would level the field for companies that care about customer service.
@@chrisbelsito4231 And then we should regulate 10% for walmart in profits, supermarkets etc. Everything right? Welcome to America, that's not how it works. Bet you get angry when Rick from Pawn Stars buys something for $150 and sells for $300. aka running his business.
Good content
Thanks! If there are any questions you would like addressed, let us know! 😊
Why would we lock in low van rates?
They are referring to shippers who like to spend as little on transportation as possible. Shippers are looking to save on expenses while drivers are looking to make more money. Unfortunately the two are competing with rates.
Good video
Glad to hear you liked it!😎
Am I making the wrong move ? Getting into this industry? I was looking to buy an existing company with one 26 ft box truck in Massachusetts. Been watching a lot of videos on how the industry isn't doing well. Please advise. Thank you in advance
The industry goes in waves and it shifts between a driver's market and a shipper's market. We are currently in a shipper's market which is not great for drivers. The difference right now, is that we have been in this market for longer than usual due to inflation and other factors. The trucking industry will always exist. Without it, goods would never make it to the shelves.
So to answer your question, this is a tough time to enter the market. Will it stay like this forever? No it will not. Your best bet is to understand the market, and when it shifts back to the drivers, you want to take advantage of the prices when you can. Treat it the way that people in trade treat it. They work hard during the summer months and save up for the quieter winter months. If you are strategic and aware, it's a great business to be in.
Good content id like to hear about how to specialize in this market. How can I stand out without a cheaper rate.
As a shipper or a driver?
I worked for Landstar , a year ago , per mile it was 3.2 now its 1.6 in 24 what the actual f happened
We are in a downturn. This cycle happens every few years and goes back and forth between the shippers and the drivers based on supply and demand. It's affecting it more because of inflation, but it will turn around again and rates will be high.
More trucks than loads equals lower rates. I bet
It is how supply and demand works and you can go back 20 years and look at the data to see how it shifts back and forth. Here is a better explanation of it: ruclips.net/video/nPQepM9RirU/видео.html
Dont work with brokers
you can get way more money
Most small brokers pay better
Look around
Good luck
Thanks for the tip!
It’s almost impossible these days to go directly through the shippers. They want 10 plus trucks before you can even bid.
Does anyone know what can I do if I am a victim of fraud from a broker?
Two brokers don't pay me, I lose $9000.
Your best bet would be starting somewhere with the FMCSA. Here is a resource that may help you: www.fmcsa.dot.gov/mission/help/broker-and-carrier-fraud-and-identity-theft
Once again large carriers destroying the market with low rates and contracts
The shippers are in control of the market right now, not the carriers.
If you haul cheap freight you deserve to go out of business!
Low freight rates are being experienced industry wide by both drivers and carriers. We are in a down market right now.
@@BeyondTheRoadATS tell that to the bank...