A Freight Market Turnaround in 2024?

Aaron Zofkie

Sunday, September 03, 2023
FreightWaves
Craig Fuller

A freight market turnaround in 2024?

Spot rates will likely increase, benefitting carriers but potentially causing challenges for shippers.

Shippers may face higher shipping costs in 2024, and freight brokerages could be particularly impacted as shippers prefer asset-based carriers in their routing guides, reducing broker volumes.

The “spread,” which measures the cost difference between contract and spot rates, remains near record levels, and it is expected to tighten as spot rates rise while contract rates stabilize.

Looking ahead to 2024, conditions for carriers are expected to improve in the second quarter, potentially giving them the upper hand in negotiations with shippers.

Carriers should prepare for higher volume and rates by right-sizing their businesses and reassessing their pricing structure, where possible.

On the other hand, shippers should benchmark their freight costs, lock in contract rates, or use index-linked contracts to manage rate and capacity risk as the market turns tighter in the coming months.

We asked our VP of Brokerage & Enterprise Sales for comment:

To navigate these shifting market conditions, Legacy continues to leverage our asset- and non-asset-based models to secure capacity for our customers. We continue to leverage our Real-Time Rating technology to increase accuracy and keep rates consistent and stable for shippers in a more volatile freight market.

-Aaron Zofkie, VP North American Transportation & Enterprise Sales

Read the full article by Craig Fuller at FreightWaves

Aaron Zofkie

Aaron Zofkie is Vice President, Enterprise Sales for Legacy Supply Chain. The results-oriented visionary has personally driven North America transportation and brokerage growth for the thriving 3PL — in an industry he has served for the last 14 years. He is committed to developing account relationships and expanding growth strategies to solve logistical problems for businesses of all shapes and sizes. Learn more about Zofkie — and maybe even gain insights into the sales executive’s tenacious goal-setting philosophy — when you follow him on LinkedIn.