Volumes and pricing declined in June, but capacity remained on the high side, resulting in a lower supply-demand balance, according to the latest release of ACT Research’s For-Hire Trucking Index.
The For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT converts responses into diffusion indexes, where the neutral or flat activity level is 50.
“Pricing strength continues to moderate from January’s peak, as volumes fall and more drivers enter the industry. The Omicron roll-off and Russia’s invasion of Ukraine helped hasten the decrease by adding significantly to freight costs via fuel, hurting spot rates, even as consumer spending began reverting to services from goods.”
“The supply-demand balance reflects loosening in the trucking market and a late stage in the freight cycle. With improving capacity and slowing freight volumes, the pendulum has finally swung from tight to loose. Recent entrants reliant on spot rates will struggle, and their exit will set up the next tight market.”