America’s freight recession is nearing its end, logistics executives say, with retail orders and rates headed higher

Author: Jeff Berman

The report explained that, from the first quarter to the second quarter, as well as annually, there some gains in shipments, invoice amount per shipment, and total revenue, including:

total shipments, at 1,901,058, up 5.0% sequentially, and 3.5% annually, growing for the first time in eight quarters;
total revenue, at $3,689,215, up 5.6% sequentially, and down 3.6% annually;
invoice amount per shipment, at $1,941, up 0.6% sequentially, and down 6.9% annually; and
gross margin percentage, at 14.9%, was down 10 basis points sequentially and down 160 basis points annually
From a modal perspective, the report saw gains, in terms of sequential and annual shipment readings, with truckload shipments up 3.9% sequentially and 0.4% annually, less-than-truckload (LTL) up 7.7% sequentially and 6.8% annually, and intermodal up 9.5% sequentially and 6.9% annually.

“It is so good to finally see the industry moving in a positive direction after two years of losses,” said Anne Reinke, TIA president & CEO, in a statement. “All segments of the industry saw steady growth from Q1 2024 through Q2 2024. We believe this isn’t just a blip in the market but a sign that the rollercoaster COVID freight market cycle is finally ending.”

And Mark Christos, chair of the TIA Board of Directors, observed that there has been a lot of shake up in the sector in recent years related to market conditions. Christos said he expects to seem more companies exit the sector over the next year, leaving a lot of opportunity for companies to quickly capitalize on the recovery, listen to the data and deliver excellent customer service.

In a previous interview with LM, Reinke explained that even with the more than 35,000 carriers having exited the market over the last 18-pluys months, capacity remains an issue, with excessive capacity driving rates down.

“Some capacity that still has to leave,” she said. “Along with the 35,000 carriers leaving, 2,000 brokers have closed shop since 2022 as well, with, obviously, there being more carriers than brokers. It was a heady time, and carriers were making money hand over fist and brokers were doing well. We are now in a different marketplace, though. And I do think as painful as it is for those individuals who are leaving the marketplace, it's probably a necessary market correction. Otherwise, we will not see improvement.”