COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index (June data) showed nearly across-the-board declines, with capacity again the lone exception.
The Volume Index dropped further into negative territory, falling to 43.2 (seasonally adjusted) in June from 46.7 in May.
The June Pricing Index at 43.8 (seasonally adjusted) recovered a good bit of last month’s sharp decline, up from 38.8 in May on a seasonally adjusted basis, the lowest in survey history.
“Volumes and utilization have been down seven of eight months, and the supply-demand balance has been loosening for eight straight months,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “In line with several second quarter earnings warnings from truckload carriers this week, this is further confirmation of a weak freight environment. May’s Pricing Index looked a little anomalously bad, so it was good to see that pick back up, though still not a great level in June.”
Denoyer said volumes reached a new cycle low in June, likely due in part to rapid growth of private fleets, the slowdown in the industrial sector and some inventory drawdown.
“This coincides with most other freight metrics,” he said. “The supply-demand balance reading loosened to 41.4, from 42.1 in May. The past eight consecutive readings have shown a deterioration in the supply-demand balance, with June the largest yet.”
ACT is a publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, major trucking and logistics firms, as well as the banking and investment community in North America, Europe, and China.