Q2 2024 Transportation Outlook: Capacity Reducing
For six consecutive quarters, the freight industry has grappled with a persistent reduction in capacity within an oversupplied market. The trend continued into the first quarter of 2024, witnessing a net decrease of 4,241 carriers, following a substantial reduction of 7,204 carriers in the previous quarter of 2023.
Image: New Authorities & Revocations. Source: FMCSA/Transportation Insight Q2 Outlook
In the midst of seven consecutive quarters of decline, Q1 brought a welcome shift for freight demand, which had hit its lowest point in Q4.
Despite a year-over-year decrease of 5.1% in volume, according to the CASS Freight Index, Q1 saw a significant 2.1% increase compared to the previous quarter, despite inflationary challenges.
We're not out of the woods yet, but we're showing signs of the upcoming correction, but don't hold your breath for it to return to COVID levels.
Image: Freight Demand Metrics. Source: Cass Freight Index/Transportation Insight Q2 Outlook