COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index reflects the slowly progressing freight market recovery.
The Volume Index increased by 1.7 points in January to 50.0, seasonally adjusted, from 48.3 in December.
“Freight demand continued its gradual recovery in January with just the fifth reading at or above the neutral 50 level in the past 22 months,” Carter Vieth, research analyst at ACT Research, said. “The improvement may be partly temporary due to the cold snap.”
The Capacity Index increased by 5.6 points month-over-month to 49.8 in January. The increase may be related to less available capacity due to cold weather in January, but capacity continued to contract.
“For-hire capacity has contracted in seven of the past nine months, and with many large fleets lowering capex budgets in 2024, plus delaying additions, capacity declines are likely to continue,” Vieth said.
The Supply-Demand Balance decreased in January to 50.2, from 54.2 in December, as the increase in capacity was larger than the increase in volumes.
“While lower in January, this marks the sixth consecutive month in which the Supply-Demand Balance has been positive, with decreasing capacity being the primary driver, but lesser volume declines have also contributed,” Vieth said. “Six months of green shoots suggests a more balanced market in 2024, after 17 months in a loose market balance.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
