?? 2024 Freight Market Insights

?? Subscribe to our email edition newsletter and receive it directly in your inbox by visiting FreightCaviar.com.

Good morning. Truckstop is moving customer service roles to India and the Philippines after North American layoffs. Aurora secured $483M to roll out driverless trucks in Texas by year-end. The 2024 3PL report shows sales up but profits down, with a focus on cost-cutting and AI. Uber Freight's Q2 revenue hit a new low since merging with Transplace. Meanwhile, seven logistics companies have merged to form SalSon Logistics.

??Question of the Day: __% of shippers value service over price. Find out below.

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

*Greenscreens.ai, forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.

?? WHAT’S COOKIN’ IN FREIGHT

?? 2024 3PL Industry Trends. The 2024 Inbound Logistics 3PL Perspectives report shows 67% of 3PLs had sales growth and 60% saw profit increases, though both are down from last year. Shippers focus more on cutting costs, improving processes, and visibility. Demand for specialized services like logistics consulting (89%) and sustainability (66%) is growing. While shippers still prioritize service over price (74%), this has slightly decreased year-over-year. The industry expects significant changes from AI, but interest in driverless vehicles and IoT has dropped slightly.

???? Truckstop Outsources Customer Service. Truckstop, a major U.S. load board, is shifting its customer service roles to India and the Philippines after laying off North American staff since March 2023. Their carrier support will be based in Texas. CEO Kendra Tucker believes this will improve efficiency and service quality, and the company is investing in tech to fight fraud. This change follows a trend in the industry, with companies like C.H. Robinson and Uber Freight also cutting costs through tech. Customers have mixed feelings, worried about the effectiveness of overseas support. More layoffs might be on the horizon as Truckstop continues to adapt.

?? Aurora Secures $483M for Driverless Trucks. Aurora has secured $483 million in funding, extending their financial runway to 2026 and planning to launch driverless trucks in Texas by year-end. This move addresses industry challenges like truck crashes and driver shortages. With strong market confidence, Aurora aims to transform freight logistics with 24/7 autonomous trucking. CEO Chris Urmson states, "This technology can't come soon enough."

TOGETHER WITH HIGHWAY

Secure your freight operations against fraud with Highway’s innovative carrier vetting platform.

Last month alone, Highway blocked over 112,000 fraud attempts.

Highway’s dynamic rule sets, automated processes, and robust verification tools ensure only the most reliable carriers enter your network. Experience enhanced security with features like monitored Certificates of Insurance (COIs), Electronic Logging Device (ELD) connection data, and in-depth equipment portfolios.

Join Highway today to elevate the efficiency, security, and compliance of your freight operations.

Book a demo today

July 2023 vs. July 2024

As we move through the summer of 2024, the freight market continues to show some signs of life. Understanding year-over-year (YoY) changes in specific market lanes is important.

This data provides valuable insights into market trends, helping to make informed decisions about pricing, capacity planning, and strategic positioning.

For carriers, it’s essential to identify high-performing lanes that can maximize profitability.

For brokers, understanding these trends enables competitive pricing strategies, better rate negotiations, and optimized load planning.

Here’s a closer look at the latest trends and insights for the month of July, powered by Greenscreens.ai.

Van

Reefer

Flatbed

Market Context

The freight market in July 2024 has seen a mixture of stability and volatility. Recent earnings reports for Q2 2024 from major transportation companies have highlighted several key factors impacting rates:

• Earnings Reports: Recent earnings from transportation giants indicate mixed performances. While some companies have reported strong Q2 results, others are facing challenges.
• Capacity and Demand: There’s a noticeable tightening in capacity, which is driving up spot rates. The increase in rejection rates suggests that carriers are becoming more selective, capitalizing on higher-paying loads.
• Seasonal Trends: The first half of 2024 showed some seasonal trends but fell short of industry expectations. The uncertainty surrounding the Federal Reserve’s interest rate policy and the upcoming election is making significant improvements difficult to forecast.
• Muted Expectations: Given the current economic climate, expectations for the remainder of the year are muted.

Industry Leadership Insights

From Covenant Logistics CEO David Parker:

• Covenant Logistics Group increased prices three times in 45 days last quarter and may increase rates further in the second half of the year, according to Founder and CEO David Parker.
• The company has seen a sustained pickup in demand since mid-May, and Parker hinted at potential further rate increases.

From Knight-Swift Transportation Holdings CEO Adam Miller:

• Knight-Swift is closely monitoring its volumes for a potential seasonal increase towards the end of the year.

Recession Fears and Their Impact on Rates

Renewed fears of a recession could significantly impact freight rates. Economic uncertainty often leads to fluctuations in demand and capacity, which in turn affects pricing strategies.

Market Data Source: Greenscreens.ai.

TOGETHER WITH ISOMETRIC TECHNOLOGIES (ISO)

Unpredictable service erodes margins.

ISO gives brokers access to a network of thoroughly vetted, high-performing carriers, complete with historical performance data for lanes, consignees, facilities and more.

Learn more here

?? AROUND THE FREIGHT WEB

?? Uber Freight Revenue Drops. Uber Freight's Q2 revenue hit a new low since its 2021 Transplace merger, with continued negative EBITDA at -$12 million.

?? Seven Logistics Companies Merge. Seven logistics companies have merged to form SalSon Logistics, aiming to streamline operations and enhance service offerings across the industry.

?? Gouging Tow Truck Operators Explain. Tow truck operators are blaming a lack of insurance options for price-gouging practices, complicating the debate over fair pricing in the industry.

?? XPO's Q2 Report. XPO's Q2 report reveals mixed results, with notable strengths in some areas but weaknesses in others, indicating a challenging quarter for the company.

?? FreightCaviar Story. Here's a LinkedIn post from the Founder of FreightCaviar detailing the story behind the company.

?? THE FREIGHT CAVIAR PODCAST

Listen to this week's episode, where we interview the CEO & Founder of CtrlChain along with Gert-Jan de Goeiji, Vice President Europe at their HQ in Eindhoven, Netherlands. At the beginning of 2023, they opened their Chicago office.

Catch it on YouTube, Spotify, or Apple Podcasts.

FREIGHT MEME OF THE DAY