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As the end of the year approaches, logistics teams will need to begin preparing strategies and reviewing forecasts for 2025. The key to staying ahead of disruption and remaining competitive now and in the New Year is to build and maintain a proactive, data-driven logistics program.
A recent Uber Freight report reveals that supply and demand remains the same, and routing guides are holding strong.
The U.S. economy is showing signs of stabilization, but the freight market is still oversupplied.
And, although the gap has slowly been closing and both saw modest growth in September, supply has continued to outpace demand for the past 27 months.
Key takeaways:
- In Q3, truckload demand rose by 0.5%, which was mainly driven by consumer spending and imports. Container imports increased by 1.7% in September, with a 14.4% increase compared to the previous year. Trucking employment remained flat year-over-year but continues a general downward trend. With weaker trailer and Class 8 orders, it’s possible for the trend to continue through the end of the year.
- Demand for LTL services continues to be slightly lower than last year, with most carriers having excess capacity. In many cases, carriers in Q3 stated they could handle volume increases ranging from 5-20%. Tonnage is still lagging and in the negative, which may slow rates and flow moving into early 2025.
- Cross-border shipping between the United States, Mexico, and Canada continues to grow. In Mexico, transload capacity for northbound loads remains tight due to driver shortages. In Canada, trucking activity has continued to balance out, primarily due to a gradual reduction in capacity. Inbound loads from the United States are declining, primarily due to the weakened Canadian dollar.
