As we reflect on the first quarter of 2024, it’s clear that the year started off keeping everyone in our industry busy dealing with challenges. Our job is to navigate challenges, right? January started with the exact opposite of anyone’s prediction, and for the first 6 weeks of the year, there seemed to be a shortage of capacity in many markets, with both carriers and brokers feeling the pressure, having in some cases been on the wrong side of the pricing prediction. Just as industry experts began to call a sustained upswing in the market by mid-February, things seemed to normalize into a typical Q1, with ample capacity to move the volume turned on.
Although Q1 ended with no significant drivers behind rates and steady normalized volumes, we remain positive the economy seems to have ample demand drivers to keep freight tonnage at a sustainable pace. On the other hand, capacity seems to be ample and stubborn. Although industry experts have predicted for many quarters that carnage and bloodbath would reduce the number of carriers and capacity putting trucks out of business, that remains yet to be seen on the road. It is my feeling that trucking remains one of the single best businesses for thousands of entry-level entrepreneurs to make meaningful income and have their own business. Creativity and grit will keep the trucks on the road without fail.
I found it notable that there is significant correction happening in used truck markets. The COVID overhang of extra equipment and overexpansion have been hitting the auctions, and along with banks that are in liquidation mode, it’s setting up for prices to correct. At a recent Ritchie Brothers sale that I attended, you could buy a used 2020 tractor for less than $20,000 and a decent 53’ dry van for less than $10,000, and those were not the lowest prices I saw. Corrected equipment prices will create opportunities for many entry-level carriers to get in and make a profit with lower cost per mile.
In times of uncertainty, it’s crucial to focus on providing world-class, high-value service to our customers and carriers. We understand that so many people depend on the value we bring to the table, whether it’s navigating scams or supporting carriers during periods of lower demand. Our role in keeping the supply chain moving efficiently is more important than ever.
Our job at Aden Logistics is to navigate the changes and keep things freight operations smoothly for our customers and our carriers. Both being Key to our success. While it’s difficult to predict what the future holds, I am confident that by specializing in our strengths and delivering true value to our customers and carriers, we will continue to thrive. Our commitment to providing world-class service and always giving 110% will carry us forward for the next 20 years and beyond.
I want to take a moment to express my heartfelt appreciation for our customers and carriers. I am honored and thankful for each and every one of you. The trust and value we have built over the years are a testament to our unwavering commitment to always doing what we say we’re going to do. To our carriers, who are the salt of the earth and among the hardest workers I know, I want to emphasize that we are not only supporting our own employees’ families but yours as well. Knowing that we provide meaningful employment and support thousands of people in this great industry is what keeps me going every day.
As we move forward, let us remember that the success of Aden Logistics is directly tied to the success of our customers and carriers. Together, we will continue to navigate the challenges and opportunities that lie ahead, always striving for excellence and delivering the world-class service that sets us apart.
Thank you for your continued trust and partnership.
Nick Fitzpatrick
President & CEO, Aden Logistics
