This Week in Freight

July 25, 2024

If you operate in the Louisville dry van market, the second quarter of this year should have been quite successful for you. In June, the average margin for a dry van dropped to $240 from $390 in May and $348 in April. 3PLs saw improvements in their bottom lines due to discounted capacity available in the spot market coupled with strong demand from shippers. The secret got out in June, and owner-operators decided to join the party, which affected 3PL net margins. The underlying market narrative is that demand is up, and that’s good news.

Regarding the underlying market influences, recent news reports have revealed a 66% surge in demand for Toyota hybrid vehicles in the first two quarters of the year. With Toyota holding a 60% share of the US automotive market and Northern Kentucky being integral to the Toyota supply chain, it seems likely that the demand for these vehicles and their parts will remain high, especially given the current fuel prices. In addition, the two factories producing Ford’s Super Duty trucks are currently operating at maximum capacity. In 2024, overall demand for Ford trucks has been strong, leading to increased production and expansion plans to meet customer needs. Factories that build sought-after vehicles are performing exceptionally well.

What is McLeod MPact?

MPact is a rate analysis tool for McLeod customers. Over 1,000 carriers, brokers, and 3PLs anonymously contribute to this data on a daily basis. 

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