(19 July 2024 – Global) The freight industry is turning a corner after a prolonged recession following the pandemic era boom in transportation rates and services.
A palpable recovery in transportation is observed globally, with the GEP Global Supply Chain Volatility Index revealing another uptick in supply chain activity. In June, Asian manufacturing growth hit a 16-month high, led by suppliers in Vietnam and India. Vietnam and India have been direct beneficiaries of the ‘near shoring’ of manufacturing out of China, contributing to a decrease in outbound Chinese ocean freight.
“This freight recession is unlike any other in history. The reason, freight brokerages play a far more significant role in the trucking market and have kept small carriers supplied with loads, albeit at cheaper rates. To be clear, trucking companies are leaving the industry, albeit at a much slower pace than anyone expected. The industry experienced a massive surge in trucking capacity over the past few years, which has greatly oversupplied the market. Based on current models, we believe the capacity reset is about halfway done and it could be 2025 before the market is back in balance” commented FreightWaves Founder & CEO Craig Fuller.