COLUMBUS, Ind. — Tighter supply remains the main reason for accelerating rates, as discussed in the latest release of the ACT Research’s Freight Forecast: Rate and Volume OUTLOOK report.
“The volume recovery seems delayed by a hopefully brief bout of inflation, and it will take time for the razor thin US savings rate to recover,” said Tim Denoyer, vice president and senior analyst, ACT “But fuel prices are falling, tariffs are lower, inventories are tight, and import trends are improving, so a modest freight demand recovery remains likely later this year. But tighter supply is still the main driver of accelerating rates, and a lull in spot rate trends after the recent surge seems likely near term.”
According to Denoyer, the early cycle phase of the classic truckload market cycle, where the industry is today, is usually supply-led.
“Volumes still don’t look great, but the industry is heading towards the mid-cycle phase, with improving volume trends on the way,” Denoyer said. “With truckload capacity pinched, the domestic intermodal market is in an unusual position of seeing that demand first.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
