It’s a long road to recovery, but after many false starts, America’s trucking industry is finally finding its way. The sector experienced a boom during the pandemic but entered a “freight recession” in 2022 due to inflation and reduced spending, which cut cargo rates and volumes. This downturn pushed over 25K trucking companies out of business — including major players like Yellow. Thankfully, things are turning a corner. Although the freight industry is still struggling with excess fleet capacity, elevated fixed costs, and intensified competition, shipments grew 9% year-over-year in the second quarter of 2024.

• Strong demand has lifted stocks of leading US trucking firms, with J.B. Hunt Transport ServicesJBHT
  and Old Dominion Freight LineODFL
  rising ~4% and ~8% over the last month.
• Despite increased expenses, pandemic cash reserves have kept smaller carriers running — allowing firms with fewer than five trucks to dominate 85% of the market.

Haul of fame: July’s anticipated growth in retail sales has spurred an uptick in trucking to warehouses and retailers, driven by major shopping events like Amazon Prime Day and Independence Day. According to Motive’s report, this demand surge will likely prompt more restocking activities by retailers. As a result, carriers like Old Dominion Freight Line saw improved performance in retail-related freight for Q2 — indicating a promising sign for the overall retail sector.