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Wednesday, July 24, 2024

September Freight Outpaces Capacity

For the fourth time in the past five months, the freight index rose faster than the capacity index, according to the most recent ACT For-Hire Trucking Index from ACT Research Co. While the changes remain small, the data suggest that excess equipment additions relative to freight growth have come to an end, and the process of rebalancing capacity and freight is underway.
The graph above shows the supply-demand balance by representing the Capacity Index (supply) less the Freight Index (demand) from January 2010 through September 2016.

Reported purchasing intentions data showed a sharp drop in September, falling to their lowest level since February 2010. Over the last four years an average of almost 60 percent of respondents have reported plans to purchase in a three-month window. In September, that number fell to 30 percent. Though the trend has been falling for the past seven months, the September reading may be an anomaly