COLUMBUS, Ind. — ACT Research reports in its latest For-Hire Trucking Index that the for-hire trucking market is showing some recovery, albeit slowly.
The Volume Index decreased 4.1 points in April to 41.7, seasonally adjusted (SA), from 45.8 in March, according to a news release.
“Evidence and anecdotes suggest private fleets have taken some volume from the for-hire market,” said Carter Vieth, research analyst at ACT Research. “Given private fleets’ cost disadvantage, and lack of incentive for backhauls, we don’t expect this to last long. Recent Class 8 data suggests private fleet capacity additions are slowing, a welcome sign after an extended downturn.”
The Capacity Index decreased by 3.0 points month-over-month to 44.2 in April, ACT reports.
“The decrease continues to reflect challenging for-hire conditions, with low rates and higher costs driving fleet contraction, as evidenced by the worst quarter for profitability amongst the publicly traded TL carriers in fourteen years,” the news release notes.
Vieth added that Class 8 sales trends suggest the ongoing capacity additions at private fleets, a key reason the downcycle has drawn out so long, are slowing too, reducing overall capacity additions and downward rate pressure.
The Supply-Demand Balance fell in April to 47.5 SA, from 48.5 in March, as volumes decreased more than capacity.
“While private fleet competition has weighed on volumes the past few months, it’s not likely to last long. Solid performance of rates and the load/truck ratio in the spot market through Roadcheck suggest the gradually improving volume trends will support the market balance in 2024. Overall, the Supply-Demand Balance suggests a market close to the elusive and impermanent equilibrium,” Vieth noted.
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.
