The supply-demand balance increased as volumes ticked up, and freight rates continued to decline, according to the latest release of ACT Research’s For-Hire Trucking Index, a monthly survey of for-hire trucking service providers.
ACT converts responses to its monthly for-hire survey into diffusion indexes, where the neutral or flat activity level is 50.
“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,” he said about capacity and rates. “And for the mostly larger fleets in our survey, capacity growth has slowed for three straight months.
Regarding the supply-demand balance, Denoyer added: “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.”