The Transportation Intermediaries Association (TIA), the leading organization representing transportation intermediaries in domestic and international commerce, has released its Q2 2024 3PL Market Report, marking the first positive growth in the logistics industry in eight quarters.
According to the report, Q2 2024 saw a 5% increase in total shipments compared to Q1 2024, along with a 3.5% year-over-year (YoY) growth. Total revenue also rose by 5.6% from the previous quarter, with a 0.6% increase in the invoice amount per shipment. While there were minor declines in gross margin—down 10 basis points quarter-over-quarter (QoQ) and 160 basis points YoY—the overall growth in shipments and revenue indicates strong market demand and operational efficiency.
“It’s a relief to finally see the industry moving in a positive direction after two years of declines,” said Anne Reinke, TIA President & CEO. “Every segment of the industry showed steady growth from Q1 to Q2 2024. We believe this is more than just a temporary upswing—it’s a sign that the turbulent COVID-era freight market cycle is nearing its end.”
Key Segment Performances
Truckload
The truckload segment performed well across various company sizes in Q2 2024. Smaller companies saw an increase in total loads, while mid-size and large brokerages experienced growth in invoice amount per load and gross margin per load. The strong market performance, coupled with effective cost management strategies, suggests a healthier market in Q2 2024 than in recent quarters. Notably, the truckload segment saw its first increase in gross margin percentage since Q3 2022.
Less-than-Truckload (LTL)
LTL exhibited mixed results in Q2 2024. While total loads increased QoQ, there was a slight decrease in invoice amount per load and gross margin per load. Smaller brokers reported mostly flat statistics, whereas larger brokers with over $100 million in revenue saw gains across all metrics. Similar to the truckload segment, LTL experienced a slight decline in invoice amount per shipment but an increase in gross margin percentage in Q2 2024.
Intermodal
The intermodal sector also saw gains in Q2 2024, with total shipments increasing by 9.5% and invoice amount per load rising by 1.1% compared to Q1. However, YoY, the invoice amount per load dropped by 22%, suggesting that while short-term gains are encouraging, the segment has yet to fully recover to 2023 levels. Despite this, the intermodal sector continued its trend of increasing gross margin percentage, a trend that began in Q4 2023.
Mark Christos, Chair of the TIA Board of Directors, commented on the industry’s outlook: “The past few years have seen significant disruption due to market conditions. I expect more companies to exit the industry over the next year, but this also presents opportunities for those that can quickly adapt, maintain excellent customer service, and leverage data-driven insights.”
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