Carrier Revenge: How Small Trucking Companies Are Taking Back Control

As we approach the end of 2024, the freight market is undergoing significant changes. This shift, termed “carrier revenge,” is enabling small carriers and owner-operators to reclaim their power after a prolonged period of challenges characterized by low rates and high operational costs. In this blog post, we will explore the current state of the freight market, the implications of carrier revenge, and actionable strategies for carriers to capitalize on this pivotal moment.

The Shifting Landscape of the Freight Market

Over the past few years, the trucking industry has faced what many have labeled the “great freight recession.” During this period, spot rates fell to historic lows, dipping below levels seen in 2009. Shippers held all the power, forcing carriers to accept loads that barely covered operating expenses. Even contract rates, which typically remain stable, saw substantial declines beginning in early 2023.

However, as we near 2025, clear indicators suggest a market rebound. Tender rejection rates are climbing, now exceeding 6%, indicating that carriers are beginning to refuse low-paying loads. This trend points to a strengthening demand and reduced truck availability. Additionally, spot rates have consistently outperformed those of 2023, suggesting a favorable shift in market conditions.

Understanding Carrier Revenge

Carrier revenge refers to the shift of power back to carriers following a period of shipper dominance. This transition presents several advantages:

• Higher Freight Rates: With fewer trucks on the road, shippers are required to pay more to secure capacity.
• Selective Load Acceptance: Carriers can be more discerning, focusing on profitable freight opportunities.
• Increased Bargaining Power: Shippers will need to adjust their expectations and offer fair rates to move their goods.

This shift not only benefits carriers but also requires them to be prepared and strategic in their approach.

Factors Driving the Shift

Several factors are contributing to the shift in the freight market:

• Regulatory Changes: The FMCSA’s drug and alcohol clearinghouse and other regulations have reduced the available driver pool, tightening capacity.
• Economic Stabilization: As the economy steadies, freight demand is expected to rise, particularly in sectors such as retail, construction, and manufacturing.
• Seasonal Trends: Seasonal demands, such as peak holiday shipping and post-holiday restocking, are driving short-term demand increases.

Understanding these factors is crucial for carriers aiming to capitalize on this turning point.

How AFT Dispatch Can Help

AFT Dispatch specializes in assisting carriers in navigating market shifts. Our services include:

• Negotiating the best rates and securing high-paying loads.
• Reducing deadhead miles to maximize earnings.
• Handling rate negotiations, paperwork, billing, invoicing, and credit checks.

Our dispatchers are committed to allowing you to focus on driving and growing your business. With over a decade of experience in the industry, we understand the complexities of the freight market and are equipped to help you succeed.

Practical Steps for Carriers

To prepare for carrier revenge, consider the following steps:

1. Work with Professionals: Partner with a dispatch service that understands the market and knows how to secure the best loads.
2. Track Your Numbers: Keep a close eye on your cost per mile and know your break-even point to avoid underpriced freight.
3. Stay Informed: Knowledge is power. Follow industry updates, watch informative videos, and stay ahead of the curve.

Are You Ready for Better Rates?

The freight market is finally shifting, and carriers are reclaiming their power. This presents a valuable opportunity to take control of your business, secure better rates, and set yourself up for long-term success. If you are ready to make the most of this market shift, fill out the below form or call/text us at (801) 448-6363.

Do not miss out on this chance to enhance your operations and profitability. Subscribe to our channel for weekly updates on top-paying loads and industry trends. Your path to success begins here.