Truckstop and Bloomberg Intelligence Survey Shows Stronger Demand May Be Around the Corner

BOISE, Idaho, July 31, 2024 /PRNewswire/ -- The Bloomberg | Truckstop semi-annual freight broker survey shows brokers are hopeful that demand could pick up in the latter half of the year.

"Though freight brokers continued to face challenging demand and rates in the first half of the year, there are some signs that the worst may be over," said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. "We believe a return to seasonal demand, higher import levels and inventory restocking will help drive a recovery later this year."

The Bloomberg | Truckstop first half 2024 Broker survey shows brokers are hopeful that the market may be finally moving toward equilibrium:

• Stronger demand may be around the corner: Most brokers appear optimistic that volume growth is just around the bend, despite demand challenges. About 49% project a volume increase in the next 3-6 months, 31% expect flat loads and 20% anticipate a decline.
   
• Spot rates may have hit a trough: An increasing number of brokers believe that rates have hit bottom, with 76% of respondents projecting rates to stay flat or increase over the next 3-6 months, three percentage points higher than the second half of 2023. Truckstop's Market Demand Index, a measure of relative demand in the North American trucking market, rose 24% on average in 2Q from last year.
   
• Broker margins remain under strain: About 44% of respondents noted lower gross margins in the first half of 2024 compared to that same time frame in 2023. This is 13 percentage points worse than what brokers indicated in our 2H 2023 survey. Brokers are not optimistic about margins for the rest of the year as 30% expect margins to deteriorate over the next six months, seven percentage points more than in 2H 2023. Increased use of tools powered by artificial intelligence could help boost margins by improving pricing, productivity gains and network optimization. The brokerage industry is still in the early stages of AI adoption -- just 36% of respondents are deploying such tools within their operations.

"Despite the improved outlook over the past six months, brokers remain skeptical about their ability to increase gross margins," said Kendra Tucker, chief executive officer, Truckstop. "Truckstop remains dedicated to providing tools that help brokers operate with speed and confidence, enabling them to move faster, gain efficiencies and grow profits."

The Bloomberg | Truckstop survey of freight brokers provides timely channel checks into the market's health. The most recent sample size was 113, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (70%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (44%), followed by broker agents (25%) and third-party logistic providers (16%).

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

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.

About Bloomberg Intelligence
Bloomberg Intelligence (BI) research delivers an independent perspective providing interactive data and investment research on over 2,000 companies, 135 industries and all global markets. Our team of 400 research professionals help our clients make decisions with confidence in the rapidly moving investment landscape. BI analysis is backed by live, transparent data from Bloomberg and 500 third-party data contributors that clients can use to refine and support their ideas. Bloomberg Intelligence is available exclusively on the Bloomberg Terminal and the Bloomberg Professional App. Visit us at https://www.bloomberg.com/professional/product/bloomberg-intelligence/ or request a demo.

SOURCE Internet Truckstop Group, LLC