Can you believe we’re already halfway through the year? Before we know it, pumpkins will be in all the stores and “It’s Beginning to Look a Lot Like Christmas” will be playing through every store’s speakers (whether or not it’s looking like Christmas at all).
As we cruise into the third quarter, it’s a season of change and opportunity. Summer is in full swing, families are gearing up for vacations, and soon, kids will be going back to school. Staying ahead of the curve can make all the difference.
In this article, we’ll look back at the twists and turns of Q2, highlighting the key events and trends that shaped the road behind us. Then, we’ll shift gears and focus on what’s coming up in Q3 — uncovering the best freight opportunities, analyzing freight rates, and sharing practical tips to keep your wheels turning and money flowing into your pocket.
Whether you’re hauling construction equipment or school supplies for the fall rush, we’ve got the insights you need to navigate the season with confidence. So, hop in the cab, check your mirrors, and let’s hit the road together. Your journey through Q3 starts here.
What Happened in the Trucking Industry in Q2?
We’ve said it before and we’ll say it again: The market has been bumping along the bottom for a long time.
Throughout Q2, freight demand was slow as inflation sat at a 23-year high. Unfortunately, there’s no indication that the Federal Reserve is planning to reduce interest rates.
Bid season lasted between December 2023 and May 2024, and while the season started out strong, it ended quickly — perhaps because carriers were unable to haul freight at the rates they agreed upon. As a result, shippers stepped back on bid activity.
When it comes to how other trucking companies are behaving, we’re seeing the struggle continue. Expenses are rising for everyone and trucking companies aren’t excluded. Mega carrier Knight-Swift is a perfect example of this. They reported a loss in Q1 in addition to losing $125 million in 2023.
They’ve had to start relying more on the spot market as shippers continue pushing rates down further. Other companies are talking about losing money, too. We’re also seeing drivers continue to leave the industry.
Instead of falling, most carriers are continuing on or getting bought out by larger companies — preventing the loss in capacity the industry needs to get back on track. For example, TFI International bought Daseke and UPS just sold the third-party logistics provider Coyote Logistics to RXO for $1 billion.
However, we did see Texas-based U.S. Logistics Solutions cease operations. 2,000 people — truck drivers and office personnel included — were told the company was closing and they wouldn’t receive the paychecks that were due to them the next day.
As far as current events go, the Port of Baltimore reopened at the start of June — easing a lot of issues for drivers — and we narrowly avoided a strike by Canada border workers.
Though Q2 started out rough, things were looking up by the end of the quarter. For example, spot rates saw a slight uptick at the end of the quarter — just as contract rates are bottoming out. We’re all hoping for a breath of fresh air.
Looking Ahead Into Q3 2024
Shippers are starting to talk about avoiding a bid season and holding rates from last year. This usually means they know rate increases are coming and they want their rates to stay locked in as cheap as they can get. Unfortunately, despite how low rates already are, there are still shippers asking for significant rate decreases.
There are some glimpses of market improvements — at least in some areas of the country. Because contract rates have bottomed out and spot rates have seen a slight increase, there’s hope for the second half of the year.
Because inflation is so high, consumers continue to spend less on goods and more on services. Manufacturers and wholesalers are keeping their inventors low and production is down overall. Inflation isn’t just touching us at home — it’s affecting businesses everywhere.
This means freight demand will stay low during Q3.
Throughout the summer, we’ll see a jump in freight from the Southern states at the peak of the produce season. Household goods will see a boost nationwide. We’ve also seen an increase in container imports.
Tips for Successfully Hauling Freight in Q3
Run Hard
You may see better weeks and months ahead when it comes to freight availability and rates, but that doesn’t mean you should let off the gas in terms of running hard. While we’re seeing signs of improvement, you should keep running hard to capitalize on gains and save money (if you can).
Limit Idle Time
When it warms up outside, the desire to idle your truck rises. After all, you want to stay cool and your truck gets hot.
It’s important to avoid the temptation to idle your truck excessively. Utilize other tools, like an APU, to cool the truck down. When temperatures are mild, crack a window to let a nice breeze in or use a fan.
Excessive idling also leads to wear and tear on the engine.
We traditionally see a rise in fuel prices in the summer as demand increases (people flocking to our nation’s highways for family road trips) but fuel prices are actually down right now.
This gives you the opportunity to capitalize on those savings — not a reason to idle more. Don’t spend all your money on the cost of fuel to idle.
Watch Out for Road Construction and Extra Vehicles
Summertime always means more drivers on the road and tons of road construction and detours. It’s easy to get frustrated and let safe driving behaviors fly out the window.
Trip plan to ensure you’re avoiding road closures due to construction. Give yourself plenty of extra time to arrive at your destination. Take it slow and give the vehicles in front of you extra space.
Prepare for Brake Safety Week
Last quarter you had Blitz Week to contend with; this quarter you’re still not in the clear. Brake Safety Week is from August 25 through August 31. This year, inspectors will be focusing on brake linings and pads.
Get your truck in the shop now to make sure your brakes are performing optimally.
Drive Through Q3 With Ease
The road ahead, while challenging, is full of potential for drivers like you who stay prepared and proactive. The trucking industry is showing signs of improvement despite the lingering effects of inflation and high operational costs.
By staying informed about market trends, you can navigate these bumps in the road with confidence.
Remember, running hard, minimizing idle time, and being vigilant about road safety are key strategies to help you thrive in the coming months.
And don't forget to prepare for Brake Safety Week to avoid any surprises that could make you go out of service.
Stay safe, stay sharp, and keep those wheels turning. Your dedication and hard work are what keep our country moving forward.
