Freight Market Shows Signs of Bottoming
January 24, 2023
latest release of ACT’s For-Hire Trucking Index, show volumes and the
supply-demand balance increased in December, while freight rates continue to
On rates, he noted, “Pricing power clearly shifted to shippers in 2022, but the recent stabilization hints the bottoming process is beginning.
Capacity continues to grow, with pent-up equipment demand still red hot, and freight demand is down, leaving the market balance loose near-term.”
On drivers, he added, “Our Driver Availability index remained at a cycle high of 57.7, reflecting medium and large fleets who act as safe havens in times like these. We also find the sharp slowdown in BLS trucking employment data interesting with regards to the industry at large.”
Denoyer concluded, “The supply/demand balance reading of 40.8 is better than its worst levels of recent months in the 37-38 range, signaling the freight cycle is starting to bottom. With capacity starting to slow and demand to recover eventually, the market should begin to rebalance in the not-too-distant future.”
Research Freight Forecast provides analysis and forecasts for a broad range
of U.S. freight measures, including the Cass Freight Index, Cass Truckload
Linehaul Index, and DAT spot and contract rates by trailer type. The service
provides monthly, quarterly, and annual predictions for the truckload,
less-than-truckload, and intermodal markets over a two- to three-year time
horizon, including capacity, volumes, and rates.