The latest release of ACT’s For-Hire Trucking Index showed nearly across-the-board declines, with capacity being the lone exception. The Pricing Index fell considerably, to 38.8, in May on a seasonally adjusted basis, the lowest in survey history. from 45.4 in April. The Volume Index dropped further into negative territory, hitting 46.7 (SA), from 49.5 in April. Fleet productivity/utilization slipped to 46.0 in May on a seasonally adjusted basis, down from 49.4 in April, and capacity growth increased to 54.6, from April’s 54.3 reading.
Tim Denoyer, ACT Research’s Vice President and Senior Analyst commented, “May’s Pricing Index was the fourth consecutive negative, after 30 straight months of expansion. This confirms our expectation that the annual bid season is not going well for truckers. We continue to believe rates are under pressure from weak freight volumes and strong capacity growth.”
Regarding the Volume Index, Denoyer said, “Volume in May fell for the sixth time in the past seven months. The softness coincides with several other recent freight metrics, with the drop likely due in part to rapid growth of private fleets and the slowdown in the industrial sector of the economy.” He added, “The supply-demand balance reading loosened to 42.1, from 45.3 in April. The past seven consecutive readings have shown a deterioration in the supply-demand balance, with May the largest yet.”
ACT is the leading publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, major trucking and logistics firms, as well as the banking and investment community in North America, Europe, and China. For more information on ACT, please visit http://www.actresearch.net.
The ACT Freight Forecast provides quarterly forecasts for the direction of volumes and contract rates through 2020 and annual forecasts through 2021 for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next twelve months. For more information about ACT’s Freight Forecast, U.S. Rate and Volume OUTLOOK, please click here.
ACT’s 61st seminar is scheduled for August 12-14, 2019, and will feature a dealer panel, as well as discussions on near-term demand of North American commercial vehicle markets and the impacts of tomorrow’s technical challenges. A global forecasting workshop is also being planned in conjunction with this semi-annual event. Click here for seminar information.