A transportation analyst sees signs of a recovery in the freight market after years of logistical and supply chain challenges in the industry.

Christian Wetherbee, senior research analyst and head of global transportation research at Citi, told BNN Bloomberg that the transportation sector is stabilizing.

“As we look at 2024, we think it’s a year of recovery for overall freight volumes and in that context, most of the freight groups are set up relatively well,” he said in a Monday television interview.

“Broadly speaking, we’re reasonably constructive on the outlook for 2024 with a consumer that is relatively healthy and overall freight volumes coming off the bottom over the last several months.”

Wetherbee recommended UPS (UPS NYSE), Norfolk Southern (NSC NYSE) and Canadian Pacific Kansas City Ltd. (CP TSX) as his top picks in the transportation sector.

Neither Wetherbee, his family, his firm not his clients hold shares of the stocks listed above. All of the companies mentioned are investment banking clients at his firm.

For the full interview, click on the video at the top of this article.