ACT Research: For-Hire Trucking Index Capacity Rising

According to ACT Research’s For-Hire Trucking Index, August volume was flat and productivity was down, with the supply-demand balance and capacity rising marginally.

“While volume index flatness m/m reflects the difficult freight environment, August’s number remains above the June/Q2 dip and reflects diminished but wage-supported underlying economic conditions,” Kenny Vieth, president & senior analyst at ACT Research, said.

“Fleet productivity/utilization declined 7.0 points m/m, to 47.6 in August, as the lower volume freight market increases inefficiency,” Vieth said. “Downward pressure on freight volumes related to inflation and interest rates, recovering equipment production, and still-rising driver populations suggest that fleet utilization is likely to be choppy across coming quarters.”

“While volumes were up incrementally this month, the reading still reflects a loose trucking market and a late stage in the freight cycle. Freight volumes are not in significant downturn, but have certainly stagnated since Q1, whereas capacity, which always lags the cycle, is still growing,” Vieth said. “With capacity growth set to continue amid flattish industry volumes, the looser environment is likely to persist, even as volumes ramp into peak freight season in the coming months.”

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!

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.