Freight Market Expected to Stabilize by Year End – CEO’s Optimistic Prediction
Doug Waggoner, the CEO of Echo Global Logistics, expressed his belief that the freight market has hit its lowest point, shed excess trucking capacity, and could potentially stabilize by the end of the year.
Established in 2005 by Bradley Keywell and Eric Lefkofsky, Echo Global Logistics is a renowned global provider of technology-enabled supply chain management services. Waggoner has been at the helm of the Chicago-based company as CEO since December 2006.
During the keynote address at FreightWaves’ virtual 3PL Summit, Waggoner mentioned that the number of trucks and carriers in the market are decreasing, indicating that the excess supply of capacity is aligning with demand. Echo experienced about a 10% sequential volume growth in January, a promising sign according to Waggoner.
Unless there are unforeseen weather events or global disruptions, Waggoner anticipates that the freight market could witness a rise in rates by the fourth quarter. With supply continuing to dwindle, Waggoner foresees a balanced market in the near future, which would stabilize pricing and potentially generate more spot freight.
Having worked in the commercial transportation industry for over 40 years, including at Yellow Corp, Waggoner has a wealth of experience. He highlighted the growth of manufacturing in Mexico as a significant trend in the current freight market, with firms relocating or expanding their operations in the country.
Waggoner also discussed Echo Global Logistics’ role as a pioneering tech-focused brokerage company in the commercial transportation sector. He emphasized the company’s early adoption of technology to revolutionize the brokerage business.
Furthermore, Waggoner touched upon the industry’s vulnerability to factors like severe weather events, citing past instances where natural disasters disrupted the national transportation network.
Echo Global Logistics, which started with 70 employees and $30 million in revenue, has now grown to over 2,000 employees and boasts a network of over 40,000 carriers. The company provides freight brokerage and managed transportation solutions across various sectors, including truckload, partial truckload, less-than-truckload, intermodal, and expedited services.
