DAT Freight & Analytics released its annual Freight Focus Transportation & Logistics Outlook report on Thursday.
In it, the company forecasts a fresh business cycle with higher freight rates but also with a new respect for the relationships that make trucking run.
"Freight shippers, brokers and carriers didn't make it through this latest cycle by reacting to events happening around them," says DAT President and CEO Jeff Clementz. "They planned for uncertainty. They understand the power of predicting market shifts, building trust and communicating effectively at every step."
The report says after two years of living through low rates and loose capacity, trucking may finally start to tighten up in the next year. "The path won't be a straight line," DAT warns, adding businesses need to look for detours and backtracks caused by things such as trade policies and even the weather.
"As we close the books on 2024, the coming year promises a dynamic freight environment — one driven by change but full of opportunity," Clementz says.
DAT sees truckload rates gradually rising at a pace similar to pre-pandemic levels, probably starting the the second quarter. However, uncertainties will persist, stemming from a new presidential administration's trade policies, global political policies, new regulations pressuring the marketplace, labor unrest and immigration.
Other trends to watch in the new year are automation and AI, data and analytics adoption, and trust and confidence.
"The post-COVID surge in fraud underscored the importance of trusted partnerships," the report says. "Heightened vetting practices will be put to the test when markets heat up."
DAT advises carriers to work their business relationships with an emphasis on service to control costs and maximize their assets, especially until the market begins to lift.
"Carriers will likely still be operating under austerity measures for a few more months at least," DAT says.
