Transportation Trend - May 2024

May 2024

Quick insights into what is happening in the transportation industry. With International Road Check Week underway, expect tighter capacity this week. Less-than-Truckload and Truckload trends continue in the same direction.

International Road Check Week

May 14 – 16 is International Road Check Week from the Commercial Vehicle Safety Alliance (CVSA). The event is a 72-hour commercial motor vehicle inspection and enforcement initiative. During this time, CVSA-certified inspectors will inspect commercial motor vehicles at weigh/inspection stations, popup inspection sites and through patrols throughout Canada, Mexico, and the United States.

With inspections, shipping freight via truckload carriers may see delays. LTL shipments may see delays, but it’s not as commonly seen as truckload carriers. This is due to the general expectation of freight moving in LTL. On top of delays, drivers opt to stay off the road during this period by utilizing holiday or sick time.

Less-than-Truckload

While the year-over-year volume is up for carriers, the increase is found through the additional volume from the Yellow Bankruptcy. Through February, research indicates there is no organic demand growth in volumes for LTL carriers. The early expectation is for LTL pricing to increase 4-6% in pace with 2023 LTL pricing.

Truckload

Spot rates are looming to bounce up from the bottom. Experts are suggesting that the past few months were the bottoming out phase of the trucking cycle. In this phase, truckload rates drop and carriers exit the market due to low supply of freight.

Outbound Tender Rejection Index on March 26 was up 2.88% year over year. The OTRI is a good indicator of if there is tight capacity in the market. The lower the index, the less picky carriers are on loads. Since February 2022, the OTRI has steadily dropped to record lows.

Chart of the Month

Source: DAT Freight Analytics