BOISE, Idaho — It is semi-annual survey time again, and the latest version offered a glimmer of hope: The Bloomberg Intelligence/Truckstop semi-annual freight broker survey shows “brokers are hopeful that demand could pick up in the latter half of the year,” according to a recent media release.
“Though freight brokers continued to face challenging demand and rates in the first half of the year, there are some signs that the worst may be over,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “We believe a return to seasonal demand, higher import levels and inventory restocking will help drive a recovery later this year.”
The first-half 2024 broker survey shows brokers are hopeful that the market may be finally moving toward equilibrium; stronger demand may be around the corner, according to the results of the survey. Those results further show that most brokers appear optimistic that volume growth is just around the bend, despite demand challenges.
Of those surveyed, about 49% project a volume increase in the next three to six months, 31% expect flat loads and 20% anticipate a decline
Results also show a belief that spot rates may have hit a trough, according to the results. It appears that an increasing number of brokers believe that rates have hit bottom, with 76% of respondents projecting rates to stay flat or increase over the next three to six months, three percentage points higher than the second half of 2023. Truckstop’s Market Demand Index, a measure of relative demand in the North American trucking market, rose 24% on average in the second quarter of last year
Survey takers also believe that broker margins remain under strain. In fact, results show that about 44% of respondents noted lower gross margins in the first half of 2024 compared to that same time frame in 2023 which is 13 percentage points worse by comparison than what brokers indicated the last survey at the end of 2023. Brokers are not optimistic about margins for the rest of the year as 30% expect margins to deteriorate over the next six months, seven percentage points more than in last year’s survey.
Increased use of tools powered by artificial intelligence could help boost margins by improving pricing, productivity gains and network optimization. The brokerage industry is still in the early stages of AI adoption — just 36% of respondents are deploying such tools within their operations.
“Despite the improved outlook over the past six months, brokers remain skeptical about their ability to increase gross margins,” said Kendra Tucker, CEO of Truckstop. “Truckstop remains dedicated to providing tools that help brokers operate with speed and confidence, enabling them to move faster, gain efficiencies and grow profits.”
The BI Truckstop survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 113, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (70%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (44%), followed by broker agents (25%) and third-party logistic providers (16%).
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
