News & Resources

2024 Q1 Freight Landscape: Trends, Challenges, and Predictions

Freight Landscape - Current Trends, Challenges, & Predictions

As the first quarter of 2024 comes to an end, here are some observations over the past few months as well as predictions about the trucking and transportation landscape looking forward:


1. Market Normalization: Experts anticipate that 2024 will be more of a normal year for the freight industry compared to previous years, suggesting a stabilization or return to typical market patterns, potentially indicating more predictable demand and pricing in the over-the-road trucking sector.

2. Seasonal Demand: Winter storms in January led to temporary disruptions in capacity, causing spot rates to briefly increase before returning to 2023 levels. However, most TL carriers operate under annual agreements, limiting the impact of spot rate fluctuations. The winter weather negatively affected equipment utilization and drove up operating costs, further impacting TL carriers’ profitability. Meanwhile, spring seasonality is expected to stimulate market demand, particularly for products such as construction materials, home and gardening supplies, summer apparel, and beverages. This seasonal uptick in demand could positively impact trucking volumes and rates during the second quarter of 2024.

3. Capacity Dynamics: While spring seasonality is anticipated to boost demand, there remains an oversupply of capacity in the market putting continued pressure on pricing and margins. However, there are indications of a slight upward trend in authority changes, particularly in specialized trucking sectors such as oil and gas transport, flatbed, and refrigerated trucks. This suggests a potential shift in capacity allocation within the industry. Additionally, spot market rates have stabilized, but there are concerns about volatility and downward pressure on rates due to excess capacity and competition among freight brokerages. These market conditions are reflected in additional notable closures of trucking companies this month in Illinois, California, and Ontario, Canada.

4. Potential Positive Movement in Inventory Levels: Despite the hesitancy among retailers to restock inventory, analysts anticipate a positive trajectory in inventory balances, which could subsequently boost freight flows. This suggests a potential uptick in demand in the future, while shippers weigh the balance between just-in-time inventory strategies in favorable market conditions or just-in-case in light of ongoing global shipping disruptions.

5. Geographical Shifts: Texas is emerging as a prominent freight transportation hub, comparable to California in its significance. The rise of distribution centers and increased trade with Mexico have contributed to Texas’s growing importance in freight transportation. This shift could have implications for over the road trucking routes, volumes, and market dynamics, with potential opportunities for trucking companies operating in the region. The upcoming presidential election will likely have implications for the freight industry, especially regarding geopolitical tensions and trade policies. Factors like potential increased tariffs and geopolitical tensions largely drive supply chain diversification trends away from China.

Navigating Industry Dynamics for Growth

“Generally, the market has been showing signs of improvement and stability with typical seasonal fluctuations in demand coupled with regional shifts, particularly around Mexico’s increasing trade volumes and the recent closure of the port of Baltimore, which will continue to impact the industry landscape in 2024.

For Legacy, navigating these trends and capitalizing on opportunities for growth means continuing to invest in strategic partnerships with reliable carriers, negotiating favorable agreements and captured capacity, and optimizing our tech stack and network to ensure cost-efficient freight movement.”

– Aaron Zofkie

Popular Posts

Search Posts

Related News
  • Canadian Rail Stike Imminent? What We Know So Far.
    Canadian Rail Strike? – What We Know So Far

    On May 1st, CN (Canadian National Railway) and CPKC (Canadian Pacific Kansas City) rail workers voted overwhelmingly to authorize a strike...

    + Read more
  • Freight Landscape - Current Trends, Challenges, & Predictions
    2024 Q1 Freight Landscape: Trends, Challenges, and Predictions

    As the first quarter of 2024 comes to an end, here are some observations over the past few months as well as predictions about the trucking...

    + Read more
  • Baltimore Bridge Impacts on Shipping
    Baltimore Bridge Impact Assessment – Update

    Following the recent Baltimore Bridge collapse and subsequent port closures, we want to keep our customers informed about the situation and...

    + Read more