TheTrucker.com

ACT Research: Spot rates see first big upswing into 2023

Reading Time: < 1 minute
ACT Research: Spot rates see first big upswing into 2023
According to ACT Research, slowing supply is key for the U.S. truckload market to transition from the late-cycle stage experienced in 2022 to the cycle-bottom phase, which features a thinning of marginal capacity amid lower rates, preceding an early-cycle market tightening.

COLUMBUS, Ind. — Truckload spot rates experienced their first significant upswing in the past year from late November into early January, and the spread between spot and contract rates has started to tighten, according to the December 2022 installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report.

“While market conditions remain broadly loose, we’re seeing more signs of slowing supply, key to the bottoming process,” Tim Denoyer, ACT Research’s vice president and senior analyst, said.

Denoyer said that slowing supply is key for the U.S. truckload market to transition from the late-cycle stage experienced in 2022 to the cycle-bottom phase, which features a thinning of marginal capacity amid lower rates, preceding an early-cycle market tightening.

“Because rates are now far below costs in some cases, the market may experience both the cycle-bottom and early-cycle phases in 2023,” he said.

The monthly 58-page ACT Freight Forecast report provides analysis and forecasts for a broad range of U.S. freight measures, including the Cass Freight Index, Cass Truckload Linehaul Index and DAT spot and contract rates by trailer type.

The service provides monthly, quarterly, and annual predictions for the TL, LTL and intermodal markets over a two-to three-year time horizon, including capacity, volumes, and rates.

The Trucker News Staff

The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.

Avatar for The Trucker News Staff
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
For over 30 years, the objective of The Trucker editorial team has been to produce content focused on truck drivers that is relevant, objective and engaging. After reading this article, feel free to leave a comment about this article or the topics covered in this article for the author or the other readers to enjoy. Let them know what you think! We always enjoy hearing from our readers.

COMMENT ON THIS ARTICLE