TheTrucker.com

Tight supply-demand balance reflected in ACT’s latest for-hire index

Reading Time: < 1 minute
Tight supply-demand balance reflected in ACT’s latest for-hire index
According to the latest For-Hire Trucking Index released by ACT Research, combination of strong demand and tight supply pushed the supply-demand balance to its tightest level in survey history, now at 74.9.

COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index, which includes data for October, shows a second consecutive month of record tightness. October’s volume index was flat at 70.7 (seasonally adjusted), while pricing dropped two points to 69.2, but still a top-decile result. With capacity and driver availability in contraction territory, at 45.8 and 28.6 respectively, the combination of strong demand and tight supply pushed the supply-demand balance to its tightest level in survey history, now at 74.9.

“As capacity tightened further, volume (demand) remained elevated, tightening the market balance even further from already tight levels in recent months,” said Tim Denoyer, vice president and senior analyst for ACT Research.

“Class 8 retail sales have improved recently, suggesting equipment capacity will start to grow over the next few quarters, but as a steel shortage could constrain production and with ongoing driver market constraints, tightness is likely to continue in the near-term,” he continued. “We would still expect some loosening after the holiday season, as parked trucks are redeployed when extended unemployment benefits expire, but strong demand from restocking should keep the market fairly tight in the near-term.”

ACT Research’s For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. Responses are converted into diffusion indexes, where the neutral or flat activity level is 50. For-hire executives interested in participating in the survey can email [email protected] for information. Survey participants receive a detailed monthly analysis of the survey data, including volumes, freight rates, capacity, productivity and purchasing intentions, along with a complimentary copy of ACT’s Transportation Digest report.

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