September Newsletter: As leaves fall, will rates rise? ??
Key Trends?
September News???
The August jobs report showed employers hired 142,000 new workers, compared to expectations of 160,000, and the unemployment rate fell from 4.3% to 4.2%. Additionally, July employment gains were revised down to 89,000, marking the lowest monthly job gains since December 2020, when employers laid off 243,000 workers. The easing market has economists nearly unanimous in predicting a cut in the Federal Reserve’s benchmark rate at their next meeting on September 18.?
The central bank aims to achieve a “soft landing,” where it successfully reduces inflation from its 9.1% peak in 2022 to its target level without triggering a recession. A lower Fed benchmark rate will eventually lead to lower borrowing costs for a range of consumer and business loans, including mortgages, auto loans, and credit cards. Additional demand could affect future forecasts as we approach the end of the year.
Market Trends???
Supply Update
In July, the for-hire carrier population saw the largest monthly drop since April, according to the Federal Motor Carrier Safety Administration. Revocations increased by 933 from June, totaling 6,182. Meanwhile, 4,612 carriers were added, resulting in a net decrease of 1,570.
Demand Update
FTR’s Freight Outlook retracted significantly in the recent update after a strong report in August. FTR’s forecast for Total Truck Loadings is now +0.2% for 2024 and +1.3% for 2025, down from +1.6% and +2.4%, respectively.
Rate Update
A sizable difference in overall Spot Load Postings resulted in a large month-over-month swing in the Load-to-Truck Ratio and Spot Rates, according to DAT. The Van Load-to-Truck Ratio dropped 13.2%, and Spot Rates fell 2.4% to an average of $2.01 per mile (including fuel). Reefer Spot data showed similar trends, with the Load-to-Truck Ratio down 8.3% and Spot Rates down 1.6%.
Market Forecast ??
The declining outlook for rates across all service modes has caused the FTR Trucking Conditions Index (TCI) to remain in negative territory through 2024. Previously, positive conditions were expected by November. FTR anticipates general improvement in market conditions for carriers, but the TCI may fluctuate between positive and negative readings in the coming months before turning consistently positive by the end of this year, according to FTR's current forecast.
Life at Axle???
Our Team?
We’re excited to share that our Chattanooga team just celebrated their most successful month ever, surpassing all previous performance milestones! Their hard work and determination have set a new standard for what’s possible, and we couldn’t be more proud of their efforts.
“This milestone is a true testament to our Chattanooga team's grit and determination! What an incredible group we have, each focused on driving our organization forward through building long-term and strategic partnerships across our industry. Congratulations again on reaching this momentous achievement!”-? Justin Wandell , VP of Logistics?
This achievement speaks to the incredible talent and dedication within our team, and while we’re thrilled to celebrate this moment, we know there’s even more ahead!?
Axle Impact?
This past month, we had the honor of supporting two Preparatory Schools, one in Knoxville and the other in Chattanooga, on their first days of school. For Knox Prep, this marked an especially exciting moment as they opened their doors for the very first time! Sarah Wilhoit Gilliam was on-site to welcome the students—and yes, there were some happy tears shed as she witnessed the beginning of what will be a transformative journey for these young men.
The mission of these schools is to engage young men in a challenging yet supportive environment, where resilience is built, academic excellence is pursued, and leadership is inspired. By partnering with institutions like Knox and Chatt Prep, we are helping to shape critical thinkers who will go on to thrive in a collaborative learning community.
At Axle Logistics, we believe in investing in the future—starting with the next generation.
Did You Know?
During football season, logistics play a huge role! NFL games attract millions of fans each week, and logistics companies are responsible for transporting everything from team equipment and merchandise to food supplies for stadiums and tailgate events. For example, the Super Bowl alone involves massive coordination in moving goods—30 million pounds of snacks are consumed on Super Bowl Sunday.???
Stay connected, stay driven. See you next month!
Contact: If you have questions about current market conditions or would like more information, connect with our team today!?
Transportation I Logistics I Insurance I Non-profit & Higher Education I Passionate I Servant Leader
2 个月What a great company filled with great people on the forefront of the logistics. If it’s got to be moved it’s got to be Axle!