Supply-Demand Balance Increases as Freight Rates Decline



According to ACT Research’s recent release of the For-Hire Trucking Index, the supply-demand balance increased as volumes ticked up and freight rates continue to decline.

“The volume environment remains soft as the holiday shopping crescendo continues, but goods demand is soft and retail inventories are overstocked,” Tim Denoyer, vice president and senior analyst at ACT Research, said. “The seeds of the next tighter environment are being sown as rising costs and falling spot rates threaten the viability of the significant small fleet capacity which has recently entered the industry. And for the mostly larger fleets in our survey, capacity growth has slowed for three straight months. By our estimates, spot rates are further below costs than ever before, which could shorten the bottoming process. We also polled our fleet friends on contract terms and found some shippers pressing for more shorter-term contracts.

“The reading reflects a loose trucking market and a late stage in the freight cycle. We believe the bottoming process has begun, and it’s possible that supply factors – including tight diesel inventories – could shorten the downturn.”


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
terry.mulreany@monitordaily.com
Susie Angelucci
Advertising: 484.459.3016
susie.angelucci@monitordaily.com

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.
www.abfjournal.com