Early Peak Season Confirmed
Retailers began the peak shipping season in June, earlier than the usual July-August start, due to concerns over Red Sea transit delays and a potential East Coast and Gulf port strike in October. This shift has led to a significant increase in trucking activity and may signal the end of the prolonged freight recession. Motive, which tracks trucking visits to North American distribution facilities for the top five retailers, reported a 30% year-over-year increase in June.
Hamish Woodrow, head of strategic analytics at Motive, told CNBC, “Compared to last year, where retailers were destocking, we now see strong restocking trends.” The data shows year-over-year order increases across various retail sectors in June, including brick-and-mortar apparel and electronics stores (33%), home improvement (24%), grocery stores (22%), and discount wholesalers (13%).
The added volume has helped the trucking industry begin to recover after struggles dating back years, when pandemic-era surpluses led to a downturn in deliveries. Trucking companies get paid per load delivered, so many struggled during the downturn, with some forced to shut down, including Convoy and Yellow. Now, Woodrow believes that the lengthy freight recession will likely end by the third quarter of 2024, thanks in large part to the longer peak shipping season.
At TLC, we are prepared to adapt to these changes and ensure your supply chain operates smoothly. Contact us today to discuss our strategies for navigating the evolving market conditions and keeping your freight moving efficiently.
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