ACT For-Hire Trucking Index: Volume Drops to Lowest Level in 27 Months

The latest release of ACT’s For-Hire Trucking Index showed the Volume Index dropping into negative territory, at 48.1, in November, for the first time in 27 months (50 is neutral). The supply-demand balance turned down even further, hitting 45.2 on a seasonally-adjusted basis.

“Volume softened in November, after a strong October reading,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “One of our friends in the industry indicated the weaker month was partly because his higher-paid drivers can now afford to take more time off. Pre-tariff shipping also appeared to take a breather in November, but still seems likely to require some payback early next year.”

Meanwhile, capacity growth accelerated amid strong retail truck sales. Denoyer commented, “The combination of a drop in Volume and rise in the Capacity Index loosened the supply-demand balance. The November reading shows the loosest industry balance since April 2016. We see this as a caution sign regarding rates in 2019. Accelerating Class 8 tractor production and slowing freight growth could continue to loosen the supply-demand balance as we head toward the 2019 contract rate season.”

The November fleet purchase intentions reading indicated another uptick in equipment demand, with 64.1% of respondents planning to buy trucks in the next three months, up from 57.2% in October. Denoyer noted, “After record year-to-date orders, this series should remain elevated as long lead-time truck orders are built and hit the highways.”

Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!

  • Hidden
  • RAM Group Holdings does not share or sell your personal information. The information we ask you to furnish is limited to what is needed to process your order fully and completely. You may unsubscribe at any time. View our Privacy Policy.
  • Please Confirm permission for Monitor/Monitordaily to e-mail you.
  • Hidden

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.