The latest release of For-Hire Trucking Index by ACT Research suggests growth is making its way into the for-hire market.
The volume index increased 4.8 points in August to 54.5, seasonally adjusted, from 49.7 in July.
“The improvement reflects both growing goods demand and inventory pre-positioning,” Carter Vieth, research associate at ACT Research, said. “Consumption of durable goods rose 4.2% q/q SAAR in Q2, imports and inventories are growing, and cross-border shipments are increasing. Though, pre-positioning ahead of potential east coast port strikes is part of the story.”
The capacity index decreased by 1.1 points month over month to 4.6 in August, from 47.6 in July.
“This month’s reading marks the 14th month in a row capacity has declined, the longest streak since the inception of the survey in late 2009,” Vieth said. “Private fleet capacity additions have continued, which is keeping pressure on for-hire fleet capacity in recent months, but overall, the supply-demand between fleets and capacity looks set to gradually begin to rebalance. As for-hire conditions have yet to pick up much, it’s hard to see capacity turning positive in the coming months, especially as for-hire fleet purchasing intentions remain under pressure.”
The supply-demand balance increased in August to 56.9 (seasonally adjusted), from 51.1 in July, as freight volumes increased and fleet capacity decreased.
“Private fleet expansion, which is not captured in this indicator, is resulting in a longer period with the market close to balance than in past cycles,” Vieth said. “Despite ongoing private fleet capacity additions in Q3, slowing U.S. Class 8 tractor sales from here will help to further rebalance and move the cycle forward, albeit slowly. Continued strong U.S. economic growth is leading to improved goods demand and seems to be starting to make its way to the for-hire market as private fleet growth moderates.”
