With domestic shipping in 2023 coming to a close, shippers are looking at the trucking trends In 2024. Several occurrences in 2023, such as inflation, driver shortages, volatile fuel prices, and more, impacted the industry. The freight was soft in 2023, meaning the demand from shippers was less than the supply of carriers. During the coronavirus pandemic, trucking demand reached astronomical levels but has since climbed down from its peak. Dry van, reefer, and flatbed spot rates have also declined since 2021, and many believe the rates are bottoming out. Smaller and owner-operator carriers have mainly been affected by the decreasing rates since larger carriers tend to ship under contract.
What Are the Trucking Trends for 2024?
Since the trucking industry is continuously in motion, 2024 will bring numerous challenges and opportunities for domestic transport. An issue that the ATA (American Trucking Industry) predicts will continue to grow is driver shortages. The ATA projects that the shortage of over 60,000 drivers will rise to over 82,000 in 2024. A deficiency in truckers may become a problem in 2024 with the belief that demand will begin to rise. The increasing dependency on e-commerce will increase demand as customers require various shipping and last-mile delivery services. Trucking fleets may need to adjust to the growth in different ways, including more efficient transport and shorter transit times.
Another trend the trucking industry has been moving towards is electrification and environmental sustainability. With the U.S. aiming to produce and sell only zero-emission trucks by 2040, the usage of EVs will continue to grow in 2024. Several ports across the U.S. have already started using EV trucks for drayage services. Similarly to regulations for emission standards, 2024 will see new regulatory changes in the trucking industry. For example, the FMCSA announced a new regulation to suspend any freight broker whose financial security is under $75000. The new rule aims to eliminate insolvent brokers and instill confidence that carriers can protect themselves from nonpayment.
Shippers Still Hopeful Despite The Downturn
Despite the downturn the trucking industry faced in 2023, many believe 2024 will see a positive turnaround. A recent freight broker survey reported that nearly 61% of the respondents expect demand growth by Q1 in 2024. Spot rates have been near the bottom for months since their 2021 peak, and specific brokers see the potential for a rebound. Another trend that the trucking industry forecasts in 2024 is greater resilience in supply chains. Disruptions in 2023, like the Israel-Hamas conflict leading to rising fuel costs, showed the importance of adapting to shipping challenges. The coronavirus pandemic also fueled the industry to have adaptable and more resilient supply chains.
How Can You Ensure the Success of Your Shipment in 2024?
While a perfect shipment may not always be guaranteed when moving cargo domestically, a shipper can take precautions before starting. You should understand all the requirements for transporting your goods, such as the regulations and paperwork. Being current with economic and political trends affecting the trucking industry is also essential. Using a freight broker to guide you through the shipping process can also improve the success of your shipment. To start your shipping journey, call A1 Freight Solutions at 786-375-9420 or email us at info@a1fsinc.com. We have various solutions to handle your transportation needs so you can focus on other aspects of your supply chain.