Trucking’s Tightrope: Sales Surge, Driver Pay Rises Amid Market Mayhem

Trucking’s Balancing Act: Surging Used Truck Sales, Rising Driver Pay & Regulatory Roadblocks

Nick Terry • September 13, 2024

Blog Post CTA

Used Class 8 truck sales are increasing, with July seeing a nearly 17% year-over-year increase to 22,800 units. The increased sales are spearheaded by younger truck models, even as credit conditions impact demand for older truck models. Although prices are below last year's levels, there was a slight uptick from June.

Saia continues seeing sizeable volume growth one year after Yellow Corp’s demise. This happens amid the industry's prolonged struggle to exit the freight recession. Although year-over-year growth rates have slowed, current freight rates are still notable by historical measures — all this, and much more, in this edition of the newsletter.

Used Class 8 Truck Sales Surge in July, Showing Signs of Market Stabilization

In July 2024, used Class 8 truck sales saw a substantial year-over-year increase of nearly 17%, reaching 22,800 units. However, prices are nowhere near last year's levels, tallying 14% lower, according to ACT Research. This spike in sales is due to a turnaround in June that has continued into July, hinting the market might be making a comeback that’s long due.

Prices for trucks six years or under have appreciated, while those more than six years old have depreciated. Experts believe there are several reasons, the chief of which are tightening credit conditions and insurance.

July was a strong month for some industry players. Businesses like Mission Financial Services reported 30% growth in financing, although momentum slowed in August. Ritchie Bros. also reported solid transportation equipment sales, though it remains a buyer's market compared to the high demand in 2021-2022.

Upcoming regulations, like the Advanced Clean Truck and Low NOx rules, are already prompting pre-buys, adding complexity to the used truck market's future outlook. Experts are optimistic but cautious about market trends as inflation and future emission regulations create uncertainty.

Saia Continues to Grow Amid Tough Comparisons and Freight Recession Challenges

A year after Yellow Corp's exit from the market, the less-than-truckload industry leader is still going strong and seeing volume growth. The first two months of Q3 in 2024 saw Saia's tonnage per day increase by 6.6% year over year, which was driven by an 8.5% rise in shipments, although shipment weights fell by 1.8%. August outpaced July's 5% rise, ending up with an 8.2% year-over-year increase in tonnage.

The LTL carrier has also expanded its network by acquiring 28 of Yellow's terminals for $236 million, reopening several locations, and planning to launch 18-21 new service centers in 2024.

Although the freight mix has shifted toward lighter, lower-margin retail shipments, its yield (revenue per hundredweight), excluding fuel surcharges, rose nearly 9% in Q2. However, the LTL carrier expects margin pressure in Q3 due to cost challenges from its new terminals.

California Small Businesses and Local Governments Oppose New Warehouse Regulations in AB98

The trucking industry continues to grapple with regulations impacting almost all aspects of the operation. The California small business sector, supported by the local government, is pushing back on Assembly Bill 98 (AB98), which proposes new state-level regulations for warehouse siting and expansion.

It is currently awaiting Gov. Gavin Newsom's decision. If passed into law, it will require cities and counties to create trucking routes and impose restrictions on new warehouse developments, including truck route plans and environmental standards. However, current or existing warehouses are exempt and will only be impacted if they seek expansion.

Business groups claim the bill could impact supply chain jobs and the economy, especially in the Inland Empire, where many large warehouses are located. On the other hand, local governments are backing the opposition through the small business sector because it undermines their authority in land-use decisions.

The AB98, which was passed rapidly, caught the opponents off guard. While it includes some accommodations for local concerns, many groups believe further amendments would be necessary if the bill is signed into law.

Trucking Industry Boosts Driver Pay Despite 2023 Freight Recession

According to the American Trucking Associations (ATA), the trucking industry continued to increase driver pay despite a freight recession in 2023. The ATA's Driver Compensation Study revealed that truckload drivers earned a median annual income of $76,420, a 10% increase from 2021.

This pay rise reflects the industry's strong demand for qualified drivers despite the sector's current downturn. The study also noted a shift from recruitment-focused incentives, such as sign-up bonuses, to retention efforts, with more carriers offering tenure bonuses.

While less-than-truckload (LTL) drivers also saw pay increases, their growth rate slowed compared to previous years.

ATA Chief Economist Bob Costello expressed cautious optimism about the freight market's recovery, with some signs that the market may have hit bottom. However, expectations remain tempered for any significant growth in the near term.

LTL Carriers See Volume Decline in August, But Yields Remain Strong

Less-than-truckload (LTL) carriers XPO and Old Dominion reported lower shipment volumes in August than the previous year. However, the companies maintained positive yield results. For XPO, the company cited a "soft" August but remains confident in its margin expansion outlook due to favorable yield trends.

Old Dominion attributed its decline to a sluggish economy and lower fuel surcharges. LTL carrier Saia defied the odds and reported a year-over-year increase in tonnage for August, although it's experiencing a shift in freight mix toward lower-margin categories.

Overall, while LTL volumes are down, yields remain strong, signaling potential stability in the market.

Manufacturing Slumps Further in August as Production and New Orders Fall

According to the Institute for Supply Management (ISM), the manufacturing sector's struggles continued in August, with production levels dropping to their lowest since May 2020. The ISM's Purchasing Managers' Index (PMI) slightly rose to 47.2% but remained below the 50% threshold, indicating the industry's continued contraction.

Production dropped to new lows, reaching 44.8%, the lowest in over three years. New orders also saw significant declines, and the backlog of orders has diminished, leading to reduced staffing levels and ongoing layoffs.

The S&P Global PMI also shows a decline, falling to 47.9 and marking the first decrease in production in seven months. Due to the gloomy outlook of falling demand, unsold stock, and reduced new orders, manufacturers hesitate to commit to new projects.

Both reports reflect deepening challenges for the sector, worsened by elevated inventories and reduced sales.

U.S. West Coast Ports Join Federal Data Initiative to Enhance Supply Chain Visibility

After the Port of Oakland and Northwest Seaport Alliance (Seattle and Tacoma) joined the effort, all major U.S. West Coast container ports are now a part of the FLOW initiative. The ports, along with the Port of Los Angeles and Port of Long Beach, which had enrolled prior, handle about 95% of West Coast inbound container volume.

The Freight Logistics Optimization Works (FLOW), led by the Department of Transportation, aims to enhance data-sharing among over 170 shippers, carriers, and supply chain stakeholders to improve freight visibility and reduce port congestion.

Although companies like Home Depot and C.H. Robinson have benefited from the initiative, it's not so much for other participants. They are now calling for more comprehensive data to further streamline decision-making.

Navigating the Freight Market With Entourage Freight Solutions

Entourage Freight Solutions has an extensive background and expertise in food service logistics. The company’s unique strategy, honed in the food supply chain, ensures an unmatched service level and extreme attention to detail in meeting all our shippers’ needs.

EFS can achieve a higher service level on all movements by approaching every shipment, whether shelf-stable or not, with the same care and consideration as the regulation-laden food supply chain industry. The company leaves nothing to chance when moving your products, from tracking all legs of transportation and driver activity to maximizing available capacity without sacrificing quality.

EFS platforms leverage the latest cloud-based, GPS-enabled technologies. They can track drivers regardless of location, continuously reroute shipments based on the dynamics at play, such as weather or traffic, and account for real-time changes in market rates. At Entourage Freight Solutions, we offer a broad range of unsurpassed services. These include:

Full Truck Load (FTL): For shipment requiring a dedicated whole truckload.
Less than truckload (LTL): For companies moving multiple LTL shipments to different locations or consolidating LTL goods from other companies to get a lower all-in rate.
Refrigerated Trucking: Leveraged to avoid spoilage and damage to temperature-sensitive goods.
Cross Docking: With locations in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, that serve as cross-docks for strategic consolidation, storage, and end-to-end distribution programs.

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

< Older Post

Newer Post >

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.