Economic downturn, an oversaturated market, and bankruptcy have made their way into the 2023 headlines of the trucking world. All of these affect the question we’ve all been asking ourselves “Is the market improving?”. This article is part of our series on following the market updates, which we release every quarter, so here are some predictions for the first three months of 2024.
Economic experts are predicting that the volume of freight may decrease in 2024. Consumers are spending less on material goods, due to a high unemployment rate and reduced earnings. If consumers spend less, volume will drop which automatically means that there will be less demand. However, we suggest you be patient, because we may be headed towards a much better year than the last one. This will be especially prominent in the second half of the year.
As we mentioned in our previous blogs covering this topic, the reason rates dropped in the first place was that the number of truck drivers has increased, giving brokers plenty of space to lower prices, knowing that with the growing number of drivers at hand, someone will have to accept their offer. Plenty of people saw trucking as an opportunity to get rich quickly, jumping in with very little knowledge about it.
This is why demand needs to outweigh the number of trucks, in order for rates to grow.
Let’s look at the numbers: In 2023 the number of carriers has actively decreased every week. More than 25,000 authorities were shut down last year, out of which almost 1200 were shut down in December alone. To brokers, this gives much fewer options to choose from, meaning they no longer have space to lower prices, knowing someone will accept them.
Basically, the first three months aren’t predicted to bring much change. Last year’s market will seep its way through the first quarter. On the other hand, this year’s produce season which falls right into Q2 is expected to bring major improvements. This turning point is anticipated to bring a heightened demand for trucks.
This improvement is predicted under the assumption that carriers will continue to leave the market.
Is 2024 the year we finally reach better rates? It is important to note that driving with us means that your earnings are certain – regardless of the state of the market. Join us now, and seize your chance to maximize your income – (630)506-8869