Recap of Q2
The second quarter started off routinely until the convergence of Mother’s Day, DOT week, and Memorial Day caused significant disruptions. This combination tightened the market, compounded by driver vacations and the produce season. While it might be premature to declare a market shift, the indicators are aligning. We are noticing increased capacity issues, rising rates, and more customer opportunities than we’ve seen in quite some time.
2024 marked the first year since 2021 that DOT week and Memorial Day seemed “normal” again. Capacity was notably tighter across the market, spot opportunities increased, and rates surged. These signs suggest that capacity is tightening, and the market is approaching an equilibrium, potentially leading to a shift.
Moving into Q3
Summer has arrived! It’s a time for family vacations, grilling on the patio, and enjoying the beach or lake. However, it’s also hurricane season, which, like other seasons, brings fluctuations and disruptions that can temporarily impact freight markets.
Projecting Q3 Trends
We anticipate continued market turbulence as we move into Q3 and Q4. Carriers’ cost per mile will not support sustained rate suppression, forcing struggling companies to exit the market. We are nearing an equilibrium.
Capacity Tightening in Key Areas
We expect tight capacity in Georgia, South Carolina, and North Carolina through July 10th-15th. Following these dates, we anticipate capacity constraints in Pennsylvania, New York, Ohio, and Michigan as peak produce season moves north.