A recent survey conducted by Bloomberg and the Truckstop load board gathered insights from owner-operators and small fleets. The survey, drawing responses from owner-operators and small fleets, offers real-time assessments of the spot market’s health. The Q1 survey had 225 respondents from various segments, including dry-van, flatbed, temperature-controlled, specialized/diversified, hot-shot, and step-deck carriers, including a significant portion (45%) operating just one tractor.
The results indicate an increase in thoughts among carriers operating in the truckload spot market over the last three months, though some concerns do persist.
“The industry is emerging from a challenging quarter, and the improved sentiment coupled with Truckstop’s rising Market Demand Index suggest rates may move higher from here,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “The direction of rates will be driven by supply-side factors as the industry remains flush with capacity.”
Despite 62% of carriers reporting a decrease in freight volume during the first quarter, the survey found that 33% anticipate a rise in freight demand within the next three to six months. This marks a significant shift compared to the previous quarter, with only 19% expecting a decline in freight demand during the same timeframe, a 12-percentage-point decrease.
Additionally, a majority of carriers expressed optimism about the future, with Truckstop’s Market Demand Index seeing a 9% increase in Q1 compared to the previous year, marking the first year-over-year gain after seven consecutive quarterly declines.
There have been notable shifts in carrier expectations. The number of carriers anticipating a decline in rates over the next three to six months has decreased to 26% (a six percentage point drop from Q4), while those predicting a rate increase has risen to 28% (a six percentage point increase from Q4).
However, when it comes to their own businesses, 44% of respondents are uncertain about their status six months from now, and 9% expressed a desire to exit the trucking industry altogether. Additionally, the survey revealed that 78% of respondents directly felt the impact of higher interest rates in Q1 on their businesses.
Elevated interest rates particularly affect equipment-financing expenses, with 19% citing increased costs as the primary reason for not replacing or adding tractors. Despite the challenges faced by carriers in Q1, such as a 10% average drop in loads, this was slightly better than the 13% decline experienced in Q4.
“We’re all eagerly anticipating a more positive shift in the tide,” said Kendra Tucker, chief executive officer of Truckstop. “Truckstop continues to be a trusted partner, committed to delivering innovative solutions to help carriers navigate this ever-evolving business landscape.”
Source: Overdrive
