Demand Softens and Available Capacity Grows |
NEWS |
Since the beginning of March, U.S. freight demand has been falling with shippers’ outlooks on rates reaching lows not seen since May 2020 during the pandemic lockdowns. According to the Bank of America, shippers’ views of trucking demand is down 23% Year-over-Year (YoY), nearly hitting “freight recession levels,” while outlooks on capacity and inventory levels have reached their highest levels since May 2020. The spot market, which makes up 20% of the U.S. trucking market, is also down with truckload spot rates falling around 15% according to DAT Freight & Analytics.
Bigger May Be Better for Now |
IMPACT |
The decline in demand for trucking may be an early sign of an economic downturn as freight is often considered an indicator of economic performance. Trucks transport 72% of all freight, so falling demand suggests consumers are not buying as much and business activity is beginning to slow. A 2019 study by trucking brokerage firm Convoy found that 6 out of 12 trucking recessions since 1972 led to ec…
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