Trucking Market Highlights Benefits of Freight Brokers
The U.S. truckload spot market saw another increase in both rates and volume over the past few weeks, continuing a back-and-forth trend throughout the year.
The spot market had seemingly settled after the two recent hurricanes sent rates surging for a brief stretch. Hurricanes Helene and Milton caused a sharp increase in spot rates across Dry-Van, refrigerated, and flatbed rates as capacity tightened across the country.
However, it does appear the market is inching closer to a supply-demand equilibrium after the recent volatility. While this is good news for the current trucking market, it doesn’t signify a major turning point yet. Demand is still on the lower end of the spectrum, showing the recent spot rate jumps likely aren’t a catalyst for a major rebound across the market.
There are encouraging signs and forecasts for 2025, though, that modest growth may be on the horizon. For one, October rates actually rose year-over-year for the first time since 2021. And speakers at the Journal of Commerce Inland Distribution Conference (Inland24) forecast small growth in the early part of 2025, with the potential for greater growth by late 2025 as demand increases.
Truckload carriers are also expecting contract rates to rise in 2025 after two consecutive years of declines. These rates are also only expected to climb in the low to mid-single digit percent range, but it is an encouraging sign for carriers.
With all this uncertainty and fluctuation around the market, it makes a third-party logistics (3PL) provider much more valuable. Having a 3PL provider or freight broker on your side when determining how to move your freight around the country can take much of the stress and guesswork out of the equation.
Many of the best 3PL providers and brokers have longstanding relationships with carriers throughout the country, allowing them to find space and rates that shippers may not be able to find on their own. Access to so many different carriers also allows a broker to shop around and compare things like rates, schedules, and availability.
But the most effective partners provide a host of benefits beyond just saving time and money. The top brokers offer their customers access to technology like a Transportation Management System (TMS) to further ease the shipping process.
Each TMS offers different capabilities, but many of the core features are similar. They are essentially a shipping dashboard for a company to compile everything in one place, from schedules to prices to final paperwork. A TMS can also simplify the documentation and payment process by consolidating everything into one place. With many businesses likely using multiple carriers, this added value offering saves time and stress by compiling everything for you in one place.
Some brokers have also gotten on board with automation recently. Platforms like Parade harness the power of Artificial Intelligence to streamline the brokering process, allowing brokers to book more loads and find available capacity than ever before.
At Scarbrough, our team of 3PL specialists brings experience from both the non-asset and asset-based sides of the transportation industry. This level of expertise and service provides an added layer of reassurance for shippers to know they are getting the most well-rounded service possible. If you need help with your freight needs or would like to learn more about Scarbrough’s full suite of services, please contact us today.
