Axle Monthly Update: July 2024

The Federal Motor Carrier Safety Administration revoked 5,509 carriers’ authority while granting 5,202 new authorities to carriers, resulting in a net drop of 307 carriers for the month of May. As mentioned last month, with a net 92k carriers added since the COVID lockdown, we should expect excess carrier supply to continue until we see either larger drops in authority or significant upticks in demand.

The food and packaged goods segment experienced slightly lower demand projections in the latest FTR update, bringing the 2024 forecast for dry van loadings down to 1.9% growth y/y vs 2.1% previously. Overall demand patterns are very close to 2023, indicating a potential return to normal patterns.

Spot Rates showed continued strength through June, as is typical for the season. Spot Rates are now showing about a 6% gain since the start of May for the Dry Van segment.

Contract rates continued be flat as we closed out the first half of the year. Spot Rates are a leading indicator of Contract and could provide insight into the direction of rates obtained through pricing efforts in the latter half of the year. FTR predicts total truck rates to increase 3.5% in 2025 vs 2024, with many of those costs being procured during rating events the latter half of this year.

Axle Logistics’ Annual Summer Jam was an unforgettable event with teammates and their families enjoying unique animal encounters and an exclusive Zoo Knoxville tour, making it a night to remember.

Big shout out to the Boys & Girls Clubs of the Tennessee Valley, our June Community Spotlight!

A huge thank you for welcoming our 2024 interns for the annual Summer Kickoff party and giving them a tour of your incredible facilities. Your mission to enable all young people, to reach their full potential as productive, caring, responsible citizens is truly inspiring. Your impact on our community is deeply appreciated, and we are grateful for your partnership!

Did you know that the logistics industry is responsible for transporting over 54 million tons of goods every day in the United States alone? This essential sector ensures that everything from everyday consumer products to critical medical supplies reaches its destination efficiently and on time.