Tighter supply remains the main reason for accelerating rates, as discussed in the latest release of the Freight Forecast: Rate and Volume OUTLOOK report by ACT Research.
“The volume recovery seems delayed by a hopefully brief bout of inflation, and it will take time for the razor thin U.S. savings rate to recover,” Tim Denoyer, vice president and senior analyst at ACT Research, said. “But fuel prices are falling, tariffs are lower, inventories are tight and import trends are improving, so a modest freight demand recovery remains likely later this year. But tighter supply is still the main driver of accelerating rates, and a lull in spot rate trends after the recent surge seems likely near term.”
Denoyer added, “The early cycle phase of the classic truckload market cycle, where the industry is today, is usually supply-led. Volumes still don’t look great, but the industry is heading towards the mid-cycle phase, with improving volume trends on the way. With truckload capacity pinched, the domestic intermodal market is in an unusual position of seeing that demand first.”
