The freight market was “business as usual” in June and July, as stable conditions followed a short-lived period of volatility around the Fourth of July, according to a report from Arrive Logistics.
Despite those swings, trucking capacity remained more than sufficient to service demand, meaning that the market is firmly in equilibrium, with rates following normal seasonal patterns, the Texas-based freight brokerage said in its Arrive Insights unit’s “Freight Market Update - July 2024.”
In a broader view, freight demand continues to decline from its May highs, but long-term import forecasts still look strong, with over two million TEUs expected each month through October 2024 (the highest levels since 2022), Arrive said.
Other economic measures are also good, as industrial production and consumer spending remain steady, and inflation continues to cool off. That dropping consumer price index (CPI) increases the likelihood of an interest rate cut in 2024. Though a single cut is unlikely to significantly impact the freight market, it would be a welcome respite for consumers, the report said.
The Arrive Monthly Market Update analyzes data from multiple sources, including but not limited to FreightWaves SONAR, DAT, FTR Transportation Intelligence, ACT Research, Morgan Stanley Research, Bank of America Internal Data, Journal of Commerce, Stephens Research, National Retail Federation and FRED Economic Data from the past month as well as year-over-year.
