Industry news

As reported by Transport Topics, freight will rebound in the second half of 2024. C.H. Robinson Worldwide views that recession will sneak into next year. They also think things will start looking good in the second quarter 2024. The markets have been tough in recent years. There is hope that things will get better in the new year.

What is in store for 2024?

There is hope that in 2024 will come bearing gifts. It will not be as straightforward as people would like. However, along the way, things will start getting better. CEO Dave Bozeman said he was quite optimistic for the new year. Trucking rates will increase. Capacity will come out of the market partly due to the bankruptcy of the Yellow Corp.

At the moment, shippers are a little more cautious about restocking. They were caught up in the mix of ordering too much of what they did not need during the pandemic. They would not like to make the same mistakes: once bittern, twice shy. The current trend has also changed so much. People are spending more on services. Therefore, there would not be much need for as much freight.

U.S. trucking capacity did not shrink as much for a few reasons. Carriers had quite a cushion from the previous years. Most of them made huge profits in 2021 and 2022. At the same time, there were huge government stimulus payments that really boosted them. Freight demand took quite a hit this year. This is mainly because trade in China has softened.

Spot rates went down by 10% compared to the previous year. C.H. Robinson must work around the clock to deal with the plummeting rates. They started by cutting down on costs. They have also invested in technology to improve efficiency. A good example is having a system that converts customer emails into orders. The goal is to increase shipments. That means efficiency must be at its best; more efficiency means that operations will be smoother. It will also mean that they could cut on other costs involved in the process.

Challenges the shippers face.

In the recent past, there have been lots of challenges that have made freight movement quite hard. The most recent one is the attacks on the Suez Canal. Another challenge is the weight restriction through the Panama Canal. The two challenges have led to delays in freight shipment. They have also meant that some shipments have had to use alternative routes. Most routes are longer, leading to more delays and costly transportation.

The transport sector will always face many challenges from time to time. However, to survive, they must always come up with solutions to their shortcomings. The pandemic made everything so tough, and now that most, if not all, sectors are close to their best, it is time to hope for the best as we enter 2024. The second quarter will bring joy as it is the time that we will move away from the ever-threatening recession.

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