Slightly lowered forecasts, impact on freight economy deepens

Slightly lowered forecasts, impact on freight economy deepens

In the release of its Commercial Vehicle Dealer Digest, ACT Research reported slightly lowered forecasts due to the Fed’s continued action toward inflation, disproportionally impacting the freight economy.

According to Kenny Vieth, president and senior analyst, ACT, “ACT’s forecasts into the medium term move incrementally lower this month on the continued deterioration of economic expectations: Inflation looks more stubborn and the Federal Reserve’s increasingly resolute rhetoric shows a willingness to do whatever is required to bring inflation to long-term targets of around 2%.”

On the freight economy, Vieth added, “Importantly, for an industry that relies on the manufacturing and distribution of goods, changes to economic expectations are even more impactful to the freight economy: ACT’s freight composite drops as rates sensitive economic sectors (durables, investment, housing) are disproportionally impacted.” He concluded, “Spot rates continued to edge lower in September. ACT’s aggregation of DAT’s rate data showed slight sequential deterioration in spot freight rates on an absolute as well as seasonally adjusted (SA) basis. September spot rates averaged $1.96 net fuel, down 3.0% from August, while the SA spot rate declined 4.0%. Anecdotes indicate that contract rate negotiations are running south of -10%.”

The report, which combines ACT’s proprietary data analysis from a wide variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report includes a relevant but high-level forecast summary, complete with transportation insights for use by commercial vehicle dealer executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the total US trailer market, used truck sales information, and a review of the US macro economy.

You May Also Like

Transervice Logistics gets new VP of Northeast operations

Marc Fried will be VP responsible for maintenance and full-service lease operations in the Northeast.

Transervice Logistics has named Marc Fried its vice president of Northeast operations. In this new role, Fried will have responsibility for maintenance and full-service lease operations in the Northeast territory including The New York Times, Verizon, Bimbo, DHL Express, Wakefern, Feldman, WB Meyer, and Dennison Lubricants.

Fried was most recently director of operations for American Expediting Company, a healthcare logistics and medical courier. Prior to that he was regional operations director for modular space solutions company, WillScot, and director of operations for Ryder Systems.

How Decker Truck Line leverages technology to improve operating efficiency

Company ownership remains under the Decker family lineage with Dale Decker’s grandson, Donald, serving as chairman of the board and Donald’s son Dale enlisted as CEO.

Rockview Farms deploys Volvo LIGHTS project’s final two VNR Electric trucks 

Volvo Trucks deployed its first Class 8 Volvo VNR Electric trucks to fleet operators in 2019.

Economic downturn could be less severe according to latest data

Data from ACT Research reports the potential for limited interest rate increases.

Leasing and Finance Index new business volume for November up y/y

Volume was down 24% from $11.3 billion in October. Year-to-date, cumulative new business volume was up 6% compared to 2021.


Other Posts

December Class 8 intake caps off a robust final four months

At 30,300 units, December Class 8 orders show a positive progression moving into the new year.

A new standard for diesel power is set in California

In 2021, California was the sixth fastest growing state for registrations of these new technology trucks, adding nearly 30,000 new units since 2020.

Peterbilt of Atlanta announces eighth location

The new location will allow Peterbilt of Atlanta to better serve its customers along the Interstate 16 corridor in Georgia.

Used Class 8 retail sales dropped 19% in November

Longer term, average price and miles were higher y/y, with age up 7% y/y.