Logistics News Recap: Trucking Firms’ Financials Are Still Downhill

Trucking Firms’ Financials Are Still Downhill

Nick Terry • July 26, 2024

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An ongoing freight recession isn’t showing many signs of letting up. As trucking carriers report their latest quarterly financial results, they’re revealing dips in revenue in income, and squeezed profits and margins.

It’s a shipper’s market and has been for multiple years, with historically low freight rates. There are more available trucks than there is available freight, making it tough for trucking companies to boost their earnings.

Following trucking’s financials gives shippers a snapshot of what’s happening in the market, so bids and rates for their own freight. Here are six headlines to keep up on the state of the trucking industry, along with other supply chain and logistics news.

J.B. Hunt’s Income Tumbles

The Arkansas-based trucking giant reported a drop in income in its second quarter. According to Trucking Dive, J.B. Hunt’s operating income fell 24% YOY. The reason? The weak freight market that’s existed for two years.

It’s not just one type of freight, either. Intermodal, truckload, dedicated contract, and integrated capacity solutions brokerage all saw volume dip. Only the final mile segment, which delivers goods on the last leg of the supply chain, reported an increase in revenue.

J.B. Hunt CEO Shelley Simpson said shippers are doing a better job managing inventory. It’s creating a demand pattern that more closely resembles pre-pandemic times. Instead of big swings or stockpiling of inventory, freight demand is more seasonal.

Despite some not-so-great results in Q2, the trucking carrier’s executives are optimistic about this second half of the year. Even by the end of Q2, they were starting to see some momentum in freight volume.

Marten’s Financials Nosedive

Marten Transport’s balance sheet painted a similar picture.

Revenue fell by nearly $40 million year-over-year in the second quarter. Net income was a third of what it was in last year’s Q2. Profits and margins weakened because of higher operational costs and near rock-bottom freight rates, Transport Topics reported.

As Marten’s executive chairman, Randolph Marten, summed it up: “Our earnings were heavily pressured by the freight market recession’s oversupply and weak demand, inflationary operating costs, and cumulative impact of freight rate reductions leading to freight network disruptions.”

Just like at J.B. Hunt, revenue fell across segments, including truckload, dedicated, intermodal, and brokerage. Operating income was also down in those four of Marten’s segments.

UPS Profits Plummet

Trucking carriers aren’t the only ones suffering. UPS – which operates trucking services but also parcel, airfreight, and more – revealed a big drop in profit in its latest earnings report.

According to an article in Pymnts, consolidated operating profit in Q2 fell 30% YOY. In addition, revenue was down, although just by 1.1% compared to last year’s Q2. Some of the factors for the drops include stagnant pricing, higher labor costs, and overall soft freight demand.

UPS wants to emerge profitably from the prolonged freight recession. To do that, it’s focusing on digital tools and rightsizing its network. In one example, UPS deployed an automated process for driver dispatching, which cut down staff by 26%. It also has a smart facility program, so customers can print out their own RFID labels, further reducing the need to employ workers to do that task. UPS has closed five buildings as part of its “Network of the Future” plan.

On the latest earnings call, CEO Carol Tomé told investors: “We expect to return to operating profit growth.”

Saia on a Spree

While UPS shutters some of its facilities to improve costs, Saia is opening up terminals.

The LTL carrier announced it will open two new service centers this year, FreightWaves reported. One is located in Stockton, California, with the goal of serving the Northern California market. The other is in Davenport, Iowa, to strengthen operations in the Midwest.

The two centers are part of a plan to add somewhere between 18 and 21 terminals this year. Other terminals will be in Minnesota, Montana, New Jersey, Pennsylvania, Texas, and Utah.

Saia has been on a spree of acquiring properties and opening service centers. The less-than-truckload company bought 17 facilities from Yellow, after that firm went bankrupt and auctioned off its assets. Saia also agreed to acquire 11 of Yellow’s leased properties. But the two new service centers in California and Iowa are separate from the Yellow sites, per FreightWaves.

All told, Saia could have up to 215 terminals by the end of this year, with its streak of opening terminals and service centers.

AAA Cooper Reopens Yellow Terminals

AAA Cooper Transportation, too, is reopening old Yellow terminals.

According to Trucking Dive, AAA Cooper’s parent company, Knight-Swift, acquired more than a dozen terminals from Yellow last year in its bankruptcy auction. Now, AAA Cooper has reopened four of the terminals. They’re located in Athens, Georgia; Jackson, Michigan; Dayton, Ohio; and Everett, Washington.

Knight-Swift sees the terminals as a way to provide national in-house LTL service by 2026.

FMCSA Needs More Data

Meanwhile in Washington, the Federal Motor Carrier Safety Administration is struggling with a lack of data.

The agency that governs trucking and safety told Congress that it’s having a tough time getting a handle on broker fraud, FreightWaves reported. FMCSA doesn’t have enough data, and jurisdiction issues are making it challenging to spot unlawful brokerage activities.

Much of the concern is related to broker fraud and its relationship with motor carrier safety.

“As brokers do not typically engage in the actual transportation of goods, however, the direct safety impact of failing to register with FMCSA as a broker is unclear,” the agency wrote in its report to Congress.

Navigate Truck Rates and Financials with Entourage Freight Solutions

Trucking rates are at historic lows. While this can seem like good news for shippers looking to contract their freight or ship it via the spot market, it also means the market is somewhat unstable, and trucking carriers will do what they can to recoup costs and stay afloat.

That’s why shippers need access to freight management services and real-time data, to keep on top of their shipments and find stability in a volatile environment.

Entourage Freight Solutions provides steady services that can help you navigate an ever-changing logistics environment and receive important information in real time.

Entourage Freight Solutions offers the following services and many more:

Our LTL Service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world.
Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed.
Our Refrigerated Transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition.

Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.