At the end of 2024, truck freight rates at major U.S. ports rose sharply, a phenomenon that was doubly affected by seasonal demand and the threat of potential labor strikes on the East Coast and Gulf of Mexico. Despite the resolution of the port strike crisis, the overall truck market is still challenging, and whether this peak in freight rates will continue remains a concern.
Increase in shipping rates across the United States:
According to data from JournalofCommerce, immediate freight rates in major port areas have increased significantly. As a major freight hub, Los Angeles' trucking immediate freight rate rose 5% in December to $2.77 per mile, setting a two-year high. At the same time, the New York-New Jersey area increased 7% month-on-month, with shipping at $2.38 per mile.
Logistics to the West Coast:
Immediate freight rates for West Coast ports including Los Angeles and Seattle continued to rise in 2024, with freight rates in Seattle up 19% from May to December, driven up in regional prices mainly due to the transfer of goods from the East Coast and Canada to the West Coast.
National Trends:
Despite rising prices in some regions, the nation's immediate truck freight rate remained stable for most of 2024, with per-mile freight between $2.16 and $2.20 rising to $2.28 through December, an increase of just $2 compared to the same period in 2023.
Despite the increase in direct freight rates, many shippers remain skeptical about a significant increase in long-term contract freight in 2025, due to ample market momentum and no shortage of truck and driver supplies; in addition, uncertainty over tariff policy and labor agreements may affect market dynamics in the coming months.
DAT Freight & Analytics predicts that freight volume in Los Angeles will achieve double-digit growth in 2025. However, because winter demand is generally lower, shipping rates may fall back in early 2025, and may rise again before and after spring.
Industry experts say that the trucking market is approaching a potential equilibrium point, and while the current freight increase will provide some support to transport companies, continued growth will depend on resolving uncertainties in the market and adjusting the supply balance.
Source: https://www.joc.com/article/trucking-rates-out-of-us-ports-rise-on-frontloading-cargo-shift-5922004
