COLUMBUS, Ind. — The spread between spot and contract freight rates has started tighten, according to the latest report from ACT Research.
Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said that truckload spot rates experienced their first significant upswing in the past year from late November into early January, and While market conditions remain broadly loose, “we’re seeing more signs of slowing supply, key to the bottoming process.”
Denoyer added that “slowing supply is key for the US truckload market to transition from the late-cycle stage experienced in 2022 to the cycle-bottom phase which features a thinning of marginal capacity amid lower rates, preceding an early-cycle market tightening. Because rates are now far below costs in some cases, the market may experience both the cycle-bottom and early-cycle phases in 2023.”
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