The latest release of ACT Research’s For-Hire Trucking Index showed the supply-demand balance moderated in July, as the volume index edged down to 64.8 (seasonally adjusted) and the capacity index rose to 56.2, marking the first readings well above neutral in three years. Demand remained strong, but the ongoing recovery continues to be shaped by tightening supply at the industry level.
“July’s results underscore the supply-driven nature of the current freight cycle,” Carter Vieth, research analyst at ACT Research, said. “While industrial demand has improved, particularly with the data center trend, and durable goods remain a bright spot, the real story is on the supply side. The sharp decline in driver availability earlier this year, combined with new regulatory enforcement, has kept capacity tight even as larger for-hire fleets begin to expand. This dynamic is likely to support strong volumes and elevated rates, even in a soft consumer environment.”
The supply-demand balance eased to 58.6 in July as capacity additions outpaced the slight moderation in volumes. Despite a sluggish goods economy, the capacity correction is driving for-hire demand, and a retail inventory restock appears to be underway.
