REPORT: “Weak Freight Environment” Persists As Supply/Demand Balance Worsens
Little Rock, Arkansas – A recently released report by trucking market analyst ACT Research showed nearly across-the-board declines with the exception of capacity.
The latest release of ACT’s For-Hire Trucking Index, which reflects compiled data from June, was not favorable for truckers hoping market conditions return to 2018 levels.
ACT reports its Volume Index dropped further into negative territory, falling to 43.2 (SA) in June, from 46.7 in May.
Fortunately though, June’s Pricing Index, at 43.8 (SA), recovered a good bit of last month’s sharp decline.
It improved from 38.8 in May on a seasonally adjusted basis, which was the lowest in survey history, ACT noted.
Tim Denoyer, ACT Research’s Vice President and Senior Analyst commented, “Volumes and utilization have been down seven of eight months, and the supply-demand balance has been loosening for eight straight months.”
Denoyer said ACT’s data findings are “in line with several Q2 earnings warnings from truckload carriers” in recent days.
“This is further confirmation of a weak freight environment,” he said.
Further, Denoyer expressed it was good to see the Pricing Index pick back up, but noted it was “not a great level in June.”
Regarding the Volume Index, Denoyer explained, “Volumes reached a new cycle low in June, likely due in part to rapid growth of private fleets, the slowdown in the industrial sector and some inventory drawdown.”
He added, “The supply-demand balance reading loosened to 41.4, from 42.1 in May. The past eight consecutive readings have shown a deterioration in the supply-demand balance, with June the largest yet.”
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