COLUMBUS, Ind. — Both volume and productivity are up in the trucking industry, with the supply and demand balance in July rising as the increase in freight volumes outweighed the increase in capacity.
This according to the latest ACT For-Hire Trucking Index released on Aug. 22.
Tim Denoyer, vice president and senior analyst at ACT Research, said that “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.”
Denoyer said that 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,” he noted.
Regarding supply and demand, Denoyer said that “while up this month, the reading still reflects a loose trucking market and a late stage in the freight cycle. 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.”
As Denoyer mentioned, diesel fuel prices are in a downward skid after several weeks of record highs.
According to the most recent report from the Energy Information Administration, the current average price for a gallon of diesel fuel in the United States sits at $4.909, down from $4.911 on Aug. 15 and $4.993 on Aug. 8.
Diesel hit a staggering $5.70 per gallon on average in June, sending shockwaves throughout the trucking industry.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.