The latest release of ACT’s For-Hire Trucking Index, showed volume and productivity up, with the Supply-Demand Balance in July rising as the increase in volumes outweighed the increased in capacity.
“The Volume Index stabilization this month coincides with better retail activity in response to significant discounts and a considerable drop in fuel prices, relieving some of the pressure on consumers. The freight environment overall remains flattish,” said Tim Denoyer, vice president and senior analyst, ACT Research. “Fleet productivity/utilization rose and is the highest it’s been in 2022, but the index is well below 2021’s average, as the easing market balance removes the pressure of the past 18 months. Downward pressure on volumes related to service substitution and inflation, recovering equipment production, and still-rising driver populations suggest that fleet utilization is likely to be choppy across coming quarters.”
The ACT Freight Forecast provides forecasts for spot truckload rates by trailer type for four to six quarters and truck volumes and contract rates for three years for the truckload, less-than-truckload and intermodal segments of the transportation industry. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence.
“While up this month, the reading still reflects a loose trucking market and a late stage in the freight cycle,” Denoyer said. “Freight volumes are not in a significant downturn, but are certainly flat to down a little, whereas capacity, which always lags, is still rising. With capacity growth set to continue amid flattish industry volumes, the looser environment is likely to persist, even as volumes ramp into peak season in the coming months.”
