Spot Market Reaching Boiling Point

This article was originally published on PR Newswire.

BOISE, Idaho, Aug. 9, 2023 /PRNewswire/ — Conditions have come to a critical point for truckers operating in the spot market as carriers show frustration over declining rates and rising costs, according to the latest Bloomberg | Truckstop survey, which polled owner-operators and small fleets.

“We remain optimistic that rates are near a bottom and poised to rise with a return to more normal seasonal trends and inventories,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “Uncertainty about when rates will recover is making it increasingly more challenging for truckers to operate as independent carriers in the face of lower demand.”

The Bloomberg | Truckstop 2Q23 Truckload Survey shows:

Spot market conditions outlook: The outlook for trucking demand in the spot market has taken a decided turn for the worse which is driving uncertainty over where depressed spot rates will head from here. The weak backdrop and rising costs may push more owner-operators to the side as profits become elusive, which in turn could be the catalyst to push rates higher.
Rate pessimism declining: Carrier sentiment is mostly split on where spot rates excluding fuel surcharges are headed following the average 19% drop in 2Q. About 39% of respondents from the Truckstop survey expect spot rates to rise in the next 3-6 months, while 24% see a decline, 3 percentage points less than three months earlier. Carriers have grown less pessimistic on rates since their outlook hit a low in 3Q, when 38% said rates would fall.
More professional truck drivers leave industry: Spot demand remained soft for carriers in 2Q with 55% of respondents noting load declines from a year earlier, which is about 7 percentage points higher than three months earlier. About 10% plan to leave the industry in the next six months, double the 1Q survey.

“Truckstop has enabled carriers to move freight efficiently in a high-trust marketplace for more than 28 years during all market conditions,” said Kendra Tucker, chief executive officer, Truckstop. “We remain committed to providing the technology they need to help save time, make more money and run their businesses on their terms.”

About Truckstop
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.

The Bloomberg | Truckstop survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 148, consisting of dry-van, flatbed, temperature-controlled and specialized/diversified carriers. Of the respondents, 62% operate just one tractor.

The complete survey is available to Bloomberg Terminal subscribers via BI.