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3 The close of 2023 is likely something many in freight transportation will celebrate. Carriers were perhaps the hardest-hit group this year, as surplus capacity in the market pushed down their pricing power. The U.S. Outbound Tender Rejection Index (OTRI), which measures capacity availability, hit a floor in May, indicating carriers were accepting any freight that came their way. Tender rejection rates grew unsteadily over the remainder of the year, however, signaling signs of recovery for carriers as capacity began to right-size compared to volumes. The tender rejection rate crossed the 5% mark in early October for the first time since January, but it quickly lost steam and by November had slumped back into the 3-4% range. These are historically low levels, and they mean that shippers continue to enjoy pricing power over carriers, as they have for virtually all of 2023. FreightWaves and Echo Global Logistics partnered to survey industry professionals in the supply chain, including shippers, carriers, 3PLs/brokers and others, to gauge their perceptions on market indicators, the state of consumer spending and predictions, upcoming budgets, and the digital tools they plan to implement. Only time will tell how noticeable a market recovery will be as economic factors play out. The survey reveals consumers are looking to spend less next year than they anticipated spending in 2023, which could result in a slower recovery for freight despite the beginnings of volume recovery. As capacity tightens amid growing volumes, shippers may also face increased freight rates in 2024. The results emphasized insights from the largest group of respondents, shippers, which accounted for 58% of those surveyed. Carriers constituted the second-largest group at 29%, while 3PLs/brokers represented only 3%. Overview Which best describes your company? Shipper 58% Carrier 29% Other 10% 3PL/Broker 3% FreightTech 0%

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