This fireside chat recap is from FreightWaves’ 3PL Summit on Wednesday.
FIRESIDE CHAT TOPIC: An overview of the truckload market.
DETAILS: The current capacity oversupply is likely to linger until the fourth quarter, said Brent Hutto, chief relationship officer at digital freight marketplace Truckstop, during FreightWaves’ 3PL Summit.
KEY QUOTES FROM HUTTO:
On the overall trucking environment: “We’re in just a normally adjusted economic bottom of the marketplace, and I don’t mean bottom like it’s terrible and nobody’s making a profit … . The marketplace has just adjusted down … and we’re just likely going to stay here for another few quarters before it adjusts back out.”
On changes in truck brokerage: “The average margin actually went up 1% from 2022 to 2023 … to 17%. Historically, brokers would not put a rate in there [but] almost 70% of brokers are now putting rates in their spot market loads … because they want to get a faster negotiation process.”
On a turnaround’s timing: “The trucking companies can’t operate at marginality with their profitability, so the marketplace will naturally lift back or you won’t get trucks to move things. That should start to happening in the fourth quarter this year.”