If you’re a shipper, you’ve been riding high for a while now.
Large transportation companies and brokerages rode their highs during COVID. When the market leaned more in shippers’ favor, transportation organizations began to dig their heels in the sand when it came to giving back concessions and lowering their rates…until they realized there was no other option.
Craig Fuller, CEO and Founder of SONAR, mentioned during the State of Freight webinar on April 18, that there will be no immediate market recovery as things are still rough for transportation providers. Low earnings reports are coming out for Q1, sizable cuts are being made and potentially more carrier bankruptcies are on the horizon.
Companies like Knight-Swift have decided to walk away from contract rates and turn to the spot market. The assumption is that Knight-Swift doesn’t want to give more concessions than they have to or be locked in at a rate that could change quickly.
From our perspective, the market is starting to capitulate; essentially everyone is getting ready to “give in” in order to create a full market recovery.
This begs the burning question of when the “ah-ha” moment will happen — when will we feel the market recover?
If you weren’t able to join our April State of Freight webinar, you can still get the full recording here.
If you want to learn more about SONAR and how our data can empower your organization, submit a demo request!
