Trucking heads kick can further into 2024

Other than intermodal, there have been no green shoots

“There’s no excitement out there – whether it’s the parcel carriers, the shippers – or anybody who thinks this thing is going turn anytime soon,” said Jim Gattoni, Landstar president and CEO.

Truckload carriers and 3PLs have seen little change in demand halfway through the fourth quarter, and some are pointing deeper into 2024 before the market corrects.

The comments came from heads of some of the largest publicly traded TL providers at Stephens 25th Annual Investment Conference in Nashville, Tennessee, on Tuesday. The sentiment aligns with a Tuesday report from freight payments platform Cass Information Systems (NASDAQ: CASS), which said October produced a cycle low for shipments.

Freight broker Landstar System (NASDAQ: LSTR) said the market is a little softer than it was at the end of October when it reported third-quarter earnings and provided fourth-quarter guidance. The company said it doesn’t expect a peak season this year.

“There’s no excitement out there — whether it’s the parcel carriers, the shippers — or anybody who thinks this thing is going turn anytime soon,” said Jim Gattoni, Landstar president and CEO.

He said sequential seasonal patterns have been lower than normal in every month of 2023. He reiterated the company’s fourth-quarter outlook but now expects results to shake out closer to the middle or the lower end of the range.

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    4 Comments

    1. Elijah J Sizemore

      I see the resent from driver’s here in the comments and I certainly understand it. I’m a broker myself, but not one of the one’s getting rich off beating down carriers. But honestly drivers, do you think if brokers disappeared that shippers would pay you the same rate they were paying the broker? No chance, everyone is out to cut costs, it is not solely the broker’s who are gutting this industry.

    2. Chris Hardwick

      This is crazy freight cost are still high I don’t understand the ideal off this the 3PLs are making a fortune look at cost of everything the stores are saying the increase of food and all stores are because of shipping look at cars 50000.00 for any kind of car while brokers get richer and they have 300.00 in a computer and copier something needs to be done owner operators have 200000.00 dollars in equipment quit blaming the trucking companies and your forecast for freight is so ridiculous you folks should be ashamed of yourself we kept American moving during the pandemic there’s no respect for the American trucking industry thanks for nothing the freight cost is in the 1960s it is 2023 people costs of repairs are at least 200.00 a hour

    Comments are closed.

    Todd Maiden

    Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.