The latest release of ACT’s For-Hire Trucking Index, showed volume, productivity, and the supply-demand balance all declined in September.
The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat activity level is 50. Please contact us at trucks@actresearch.net if you are a for-hire executive interested in participating. In return, participants receive a detailed monthly analysis of the survey data, including Volumes, Freight Rates, Driver Availability, Capacity, Productivity and Purchasing Intentions, plus a complimentary copy of ACT’s Transportation Digest report.
Concerning volume, Tim Denoyer, Vice President & Senior Analyst at ACT Research, commented, “It’s getting choppier out there, with more variance between freight data sets. While not comprehensive, our For-Hire Trucking Indexes draw from a strong top-tier community of medium and large fleets with a sharp sense of market conditions and direction. So, we view these results as cautionary leading indicators for the broader market.”
On rates, he noted, “Like clockwork, six months after the market balance turned loose, rates have turned down broadly as contracts are re-priced. Downward pressure on freight demand related to inflation and interest rates, coupled with recovering equipment and driver capacity, will likely keep rates under pressure for a few more quarters.”
Regarding the supply-demand balance, Denoyer said, “The market fell to the loosest level since April 2020 in September, which portends additional rate pressure, but capacity growth has begun to slow, which is key to the bottoming process for rates.”
The ACT Freight Forecast provides forecasts for spot truckload rates by trailer type for four to six quarters and truck volumes and contract rates for three years for the truckload, less-than-truckload and intermodal segments of the transportation industry. In 2019, the average accuracy of the report’s truckload spot rate forecasts was 98%. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence.
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
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Access more information about ACT’s Freight Forecast, U.S. Rate and Volume OUTLOOK.
Learn more about other freight-related publications offered by ACT Research.
Access the previous For-Hire Trucking Index Press Release.