J.B. Hunt Transport Services warned late Tuesday that third-quarter earnings could fall 5% to 10% sequentially due to surging fuel and driver-related costs.
Tender volumes have gone nowhere for two years. Rejections have tripled. The data says this cycle has been defined by capacity leaving the market — not by surging freight demand.
Freight broker RXO reported its truckload spot rate index posted its largest sequential gain in five years during the second quarter, with the strong momentum carrying into the third quarter.
Truckload rates surged in July even as demand remained squishy, monthly data from Cass Information Systems showed.
The transportation market remained very tight in July, despite a modest slowdown from a seasonally stronger June.
As shippers migrate toward high-quality transportation providers, J.B. Hunt Transport Services comfortably surpassed expectations for the second quarter.
Trucking’s tightness could last well into 2027, if not further.
Some fleets are implementing pay raises for drivers early in the truckload market’s recovery.
Some shippers are being forced to reprice their entire book as contractual truckload rates set just a couple of months ago are no longer being honored.
Truckload carriers appearing at an investor conference this week laid out the thesis for a sustained period of rate recovery.
Supply chain adaptations have led to diminishing distances for truckloads. The shrinking length of haul has mitigated some of the recent market capacity shortfalls.
Extreme supply and pricing dynamics persisted across the freight market in April, according to a monthly survey of supply chain managers.
Broker warns shippers not to expect a return to 2025 conditions.
Management at J.B. Hunt Transport Services pointed to mounting evidence that recent tightening across the truckload market will not be a temporary blip.
Fuel price hikes and poor weather overhung the first quarter, but supply-side tailwinds along with improving demand could spell the end of earnings degradation for truckload carriers.
Management from J.B. Hunt Transport Services said shipper attitudes are little changed as truck capacity leaves the market and fuel prices surge.
Midwest rejections are outpacing the West Coast by a factor of 4. What could be driving this huge disparity?
February’s Logistics Managers’ Index showed a freight market recovery that is in “full-swing.”
Freight broker RXO said the truckload market is seeing “the biggest structural change” since deregulation in 1980.
Capacity attrition and retooled carrier networks could present a challenging bid season for shippers.
