This article was originally published on PR Newswire.
BOISE, Idaho, Sept. 6, 2023 /PRNewswire/ — The Bloomberg | Truckstop semi-annual freight broker survey shows brokers remain relatively optimistic about their prospects over the next six months in the face of weaker demand, falling rates and increased competition.
“Despite fewer spot opportunities and moderate economic activity, brokers remain fairly optimistic with about 61% surveyed expecting demand growth over the next six months,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “Freight-broker sentiment is becoming less bleak as spot-rate conditions might be nearing a bottom and an economic soft landing may be achievable.”
The Bloomberg | Truckstop first half 2023 Broker survey shows brokers are optimistic:
- Brokers have a glimmer of hope on demand: About 46% of respondents said volume fell in 1H-23 compared with a year earlier, or about 12 percentage points higher than in our survey six months earlier. Though more reported lower demand, the magnitude of declines averaged about 2% compared with last year. About 35% of respondents said 1H volume rose, driven mostly by newer broker businesses gaining share or customer-specific developments.
- Spot rate sentiment bounces off bottom: Spot rates excluding fuel surcharges have fallen 31% since peaking at the end of 2021 and are down 13% from last year’s levels. Brokers have become more optimistic about the outlook, with the drop in rates appearing to be near a bottom. About 46% of those surveyed expect spot rates to rise over the next 3-6 months, 18 percentage points better than the 2H-22 survey, which marked a low in sentiment.
- Brokers feeling better about gross margins: About 37% of respondents had a lower gross margin in 1H than a year earlier, or 8 percentage points higher than our previous semiannual result. Despite the declines, brokers remain optimistic about gross-margin expansion this year, with 54% expecting a widening over 2022 levels.
“Truckstop is committed to delivering innovative products that provide brokers with the highest quality carriers for the right load, at the right time, during all market conditions,” said Kendra Tucker, chief executive officer, Truckstop. “It’s imperative that we continue to equip brokers with the tools they need to find coverage, meet capacity and increase profits.”
The Bloomberg | Truckstop survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 184, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (61%) have 1-50 employees. Of those surveyed, broker agents made up the biggest group (34%), followed by non-asset-based brokers (28%) and third-party logistic providers (22%).
The complete survey is available to Bloomberg Terminal subscribers via BI.
Truckstop is a trusted partner for carriers, brokers, and shippers, empowering the freight community through a platform of innovative solutions for the entire freight lifecycle to increase efficiency, automate processes, and accelerate growth. As one of the industry’s largest neutral freight marketplaces, Truckstop provides the customer service as well as scale of quality loads and trucks to give customers of all sizes, whether on the road or in the office, the transparency and freedom to build lasting relationships and grow their businesses. To learn how Truckstop is helping move the freight community forward, visit https://truckstop.com.