COLUMBUS, Ind. — The nation’s freight cycle fundamentals will improve in 2024, according to the latest release of the Freight Forecast, U.S. Rate and Volume OUTLOOK report.
Freight demand is below trend, but starting to recover, as post-pandemic effects fade, both real disposable incomes and retail sales are accelerating, and disruptions in ocean shipping are likely catalyzing the end of the 18-month destock.
“The new year begins with global shipping in turmoil, import freight shifting from East to West, and for-hire demand on the long side of a two-plus-year downturn,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “Changing ocean and inventory dynamics support an upturn in freight demand, particularly intermodal, where we raise our rate forecasts this month.”
Global ocean shipping disruptions will likely add to air and land freight movements in 2024, according to ACT.
The two primary routes from Asia to the U.S. East Coast have been severely impacted by conflict in the Red Sea and low water in the Panama Canal. This is pressing freight to the west coast ports, where the intermodal network will likely experience strong demand, which will eventually flow into the truckload market.
“Real retail sales recently turned positive after a year of declines, and after 18 months of destocking, a restock is drawing near, spurred by ocean risks,” Denoyer said. “Supply dynamics are also shifting as 2024 begins, setting up a new stage of the cycle. While partly temporary, the mid-January cold-related slowdown in rail volumes is already sparking truckload spot activity.”
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.
