As the freight industry moves into Q2, it is important to contextualize the previous 3 years while the search for a market floor continues.

The freight industry has always been subject to market fluctuations, with demand and supply dynamics affecting pricing and profitability. In recent times, however, the industry has been facing a unique challenge - the market floor seems to be elusive. The COVID-19 pandemic has significantly impacted the freight industry, with disruptions to supply chains, shifts in consumer behavior, and changing trade patterns. The initial shock of the pandemic led to a sharp decline in demand for freight services, as businesses and factories shut down and consumer spending decreased. This led to a reduction in freight rates, which put pressure on the profitability of the industry. However, as the world started adapting to the new normal, the freight industry experienced a surge in demand, driven by e-commerce and the need to restock inventory. This led to a sharp increase in freight rates, which has continued to this day. Despite the increase in rates, the industry is still facing challenges in terms of capacity constraints, driver shortages, and equipment availability. One of the reasons why the freight industry has yet to find the market floor is the uncertainty surrounding the pandemic. It generated an environment of unpredictability, which makes it challenging for businesses to plan and make long-term investments. Another factor contributing to the volatility in the freight industry is the disruption caused by technological advancements. The rise of digital platforms, automation, and artificial intelligence is transforming the way the industry operates, leading to new business models and competitive dynamics. This is creating both opportunities and challenges for players in the industry, and it remains to be seen how this will impact pricing and profitability in the long run. In essence, the freight industry is currently going through a period of unprecedented change and disruption. While the surge in demand has led to an increase in rates, the industry is still facing challenges in terms of capacity constraints and uncertainty. As the world continues to adapt to the new normal, the industry will need to find ways to navigate these challenges and find a stable market floor as we move into the second quarter of 2023.?