America’s freight recession is nearing its end, logistics executives say, with retail orders and rates headed higher

CNBC
July 17, 2024
Lori Ann LaRocco

The trucking industry is turning a corner after a prolonged freight recession that succeeded the Covid boom in transportation rate and services, according to logistics executives.

Data from Motive, which tracks trucking visits to North American distribution facilities for the top five retailers, shows volume up 30% year-over-year in June.

Peak season, the time of year when suppliers bring in their back-to-school and holiday items, started a month early in June versus July due to the Red Sea diversions and the threat of a longshoreman strike at the East Coast and Gulf ports on October 1.

Other logistics executives say the low is likely in.

“We have hit the bottom in freight rates,” said Paul Brashier, vice president of global supply chain at ITS Logistics. “We are not cratering and we may be lifting off the bottom a little bit.”

Brashier said the data on current number of loads that need to be shipped and the actual amount of trucks ready to pick these loads up (also known as truck-to-load ratio), and freight pricing, shows an environment “starting to resemble more of 2019.”

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