Trucking news and briefs for Thursday, Oct. 26, 2023:
ACT Research noted that while freight volumes fell from August to September, August was a one-off surge and September's reading still shows a gradually improving volume trend.ACT Research
The Volume Index fell 4.9 points in September to 49.5 seasonally adjusted (SA), from 54.4 in August. While retrenched from the one-off surge last month, this month’s reading still shows a gradually improving volume trend. ACT noted that consumers are reverting back to more goods spending as the post-pandemic service boom fades.
“Freight demand fundamentals are starting to improve after nearly two years of substitution, destocking, and inflation,” said Tim Denoyer, Vice President & Senior Analyst at ACT Research. “Rising interest rates, declining savings and private fleet growth are ongoing headwinds to for-hire volumes. However, with improving goods consumption trends, the end of destocking, and a resilient industrial sector, we expect the gradually improving trend to continue.”
The Pricing Index jumped meaningfully in September, up 9.2 points to 48.5 (SA), as rates continue to stabilize. The “less worse” improvement and soft pricing environment should persist in the near term, ACT noted, as capacity additions continue and fleets hold on to drivers to avoid future hiring challenges when the market turns
“The pricing environment is showing signs of starting to firm, but declines should persist in the near term as capacity additions and an elevated focus on labor retention persist,” Denoyer added. “Improvements in volumes and slowly decreasing for-hire capacity are positive signs for pricing. Spot rates have been steady for four months as the rebalancing rolls along.”
The Driver Availability Index hit an all-time high in September with a reading of 62. ACT said fleets continue to see a large influx of drivers, unprecedented in the survey’s history.
