Trucking Supply and Demand Prediction for 2024 in North America

The Logistics Managers’ Index (LMI) indicates a potential shift in the transportation market, as the capacity component has fallen below the transportation price figure, possibly signaling a move towards supply and demand equilibrium. Despite truckload demand being lower than during the pandemic, it has steadily grown in 2023. Carriers and third-party logistics providers grapple with oversupplied capacity due to a surge in entrants in 2020-21. Tender volumes in December are over 10% higher year over year, signaling increased economic demand for goods. Zac Rogers, an associate professor of supply chain management, attributes demand growth to right-sized inventories and consumption growth. Concerns about consumer health persist, but Anthony Smith, FreightWaves’ chief economist, expresses confidence in the American consumer. The Logistics Managers’ Index (LMI) outlook for transportation prices in 2024 indicates respondents’ expectation of rates bottoming, with a reading around 64. The data suggests a fast-moving return to equilibrium between supply capacity and demand. 

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Reference

FreightWaves. (2023, November 18). “LMI Showing Transportation Market Flip is Coming.” Retrieved from https://www.freightwaves.com/news/lmi-showing-transportation-market-flip-is-coming.