Today’s transportation market continues to influence how shippers go to market with their freight. During the last quarter of 2022, it is likely there will be some normal cyclical uptick in the spot market. This will be caused by some reduction in active capacity as drivers take time off for the end of year holidays.
In the first quarter of 2023, we can expect a typical drop off in tension and pricing due to lower freight volumes associated with historical shipping patterns and the continued impact of the cooling economy. As this occurs, the shift to oversupply will become more evident. C.H. Robinson forecasts for 2023 show some familiar seasonality to pricing with the year ending about where it begins. The market will likely take through 2023, and perhaps into 2024, before the upcycle returns.
Often, participants in the trucking market focus on the economy and correlated freight volumes. These perspectives on the driver and tractor supply acts as a reminder that the carrier community responds to the shifting market. Eventually, either the economy produces more freight or active capacity reduces to a point where carrier profitability returns to a level that supports investment and growth. This occurs during the period of the cycle after the bottoming of the spot market at estimated cost of operations per mile.
To develop or expand your individual logistics program and learn more about the consultative services available through the Western Growers Transportation Program, please contact Lauren Singh, WGTP / CHR Transportation Director, C.H. Robinson, at
(831) 392-7061 or [email protected]