The fourth quarter of 2024 concludes the year with the highest freight volumes observed since March 2023. Simultaneously, the amount of available equipment has fallen to its lowest point in more than two years. This combination of high demand and low supply has created a historically strong market for carriers to close out 2024.
Strong Demand Drives Busy December
The December 2024 Freight Index reveals a busy month for freight movement across Canada, with significant growth, showcasing the highest load postings since March 2023. Q4 displayed significant improvements in all areas as compared to the third quarter of 2024, including a 16.53 percent quarter-over-quarter decline in available capacity, marking a significant advantage for carriers. Key findings include:
- Demand Soars: Freight volumes surged by 14 percent compared to November 2024 and a substantial 18 percent year-over-year, fuelled by increased consumer spending and holiday season activity. The significant surge in volumes was unprecedented particularly in consideration of the multiple days of lower volumes due to holiday closures. This marks the highest volume increase for 2024 creating a highly favourable market for carriers.
- Cross-Border Resilience: Cross-border postings remained strong, accounting for a solid 64 percent of all postings in December. Both inbound and outbound activity saw healthy growth, with inbound postings rising by 17 percent month-over-month and 24 percent year-over-year, while outbound postings increased by 12 percent month-over-month and a notable 24 percent year-over-year. Cross-border activity drove up load postings significantly over the last month to create an ideal carrier market with lots of growth opportunities for all carriers on Loadlink regardless of equipment type.
- Equipment Breakdown: Dry vans dominated equipment postings at 56 percent, followed by reefers at 22 percent, flatbeds at 18 percent, and other equipment categories at 4 percent ensuring that all categories align with typical trendlines.
- Capacity Tightens: Despite strong demand, truck postings continued to decline, leading to a significant improvement in the truck-to-load ratio. The monthly ratio dropped to 2.24, down from 3.19 in November 2024 and 3.68 in December 2023. Quarter over quarter truck to load ratio decreased by 13.3 percent. This marks the most significant drop in equipment postings since prior to January of 2023 which is a positive sign for carriers looking to earn in the spot market.
Cross-Border Trade Momentum
The data highlights the resilience of cross-border trade, with both inbound and outbound experiencing substantial growth. This growth can be attributed to strong consumer demand in both Canada and the United States, which continues to fuel cross-border trade, particularly in retail and consumer goods sectors. According to Stats Canada “Exports to the United States rose 6.8 percent in November, while imports increased 4.1percent.” ; while the December growth has not been released as of yet, the trendlines indicate additional growth in December as the holiday season rolled around.
Intra-Canadian Growth
Intra-Canadian freight movement also demonstrated strong growth, with a 10 percent increase from November 2024 and a more significant 15 percent increase year-over-year. These increases reflect the continued expansion of the Canadian economy. However, this growth was accompanied by a decline in available equipment, dipping 21 percent month-over-month and 30 percent year-over-year.
Looking Ahead
While the December Freight Index indicates a strong finish to 2024, several factors will continue to shape the Canadian freight market in the coming months.
The December Freight Index reflects a dynamic and evolving Canadian freight market. Strong consumer demand, particularly during the holiday season, fueled significant freight volumes. This surge in demand, coupled with a continuing decline in available truck capacity, created a favorable environment for carriers. We anticipate high volumes to continue in January 2025 making the future appear bright for carriers looking to work within the spot market.
About Loadlink Technologies
Loadlink is Canada’s leading freight matching platform, connecting brokers and carriers to simplify freight movement across the country. By focusing on technology and innovation, Loadlink helps businesses in the logistics industry improve efficiency and maximize their earnings.