It was a light week for economic trucking news, but a new survey from Truckstop and Bloomberg Intelligence suggests brokers are feeling better about the market and feel improvements are just around the bend.
Meanwhile, spot rates weakened in the most recent week, but that’s typical for late July.
Broker survey points to better times ahead
A new semi-annual survey from Truckstop and Bloomberg Intelligence suggests brokers are expecting demand to pick up in the second half of this year.
“Though freight brokers continued to face challenging demand and rates in the first half of the year, there are some signs that the worst may be over,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “We believe a return to seasonal demand, higher import levels and inventory restocking will help drive a recovery later this year.”
Most responding brokers said they’re optimistic volume growth is just around the corner, with 49% expecting a volume increase in the next three to six months and only 20% anticipating a decline.
Seventy-six per cent of brokers feel rates have bottomed and expect them to stay flat or increase in the next three to six months.
Broker margins have been under strain and 30% of respondents anticipate margins to deteriorate further over the next six months. Only 36% are deploying tools such as AI adoption in their businesses to improve margins.
“Despite the improved outlook over the past six months, brokers remain skeptical about their ability to increase gross margins,” said Kendra Tucker, chief executive officer, Truckstop.
Spot market rates soften
Truckstop and FTR Transportation Intelligence report a weakening of van spot rates for the week ended July 26, but noted rate softness in July following the Independence Day holiday is typical.
Van and reefer rates remained higher year over year, though comparisons narrowed. Flatbed rates slid y-o-y, following their first year over year increase in nearly two years the previous week.
Total rates typically stabilize in early August, Truckstop reported, with van rates seeing an increase in the run-up to the Labor Day holiday. The week ending today typically sees week over week gains in van spot rates but declines in flatbed rates.
