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Freight Metrics Moderate as Worries Mount

| November 27, 2018

long truck on highway at dusk.

As freight metrics begin to moderate and potential signs of a global slowdown become a bit more prominent, ACT Research, in its  release of its Commercial Vehicle Dealer Digest, believes that the developments do not portend that the market is poised for a near-term rollover.

“This does suggest that the forward momentum has slowed. As well, we are hitting tougher year-over-year comparisons,” said Kenny Vieth, ACT’s President and Senior Analyst. He continued, “Given that, performance compression has been expected, but it is important to reiterate that the roll-off of momentum in freight data is occurring at high levels and against tough comparisons. This is still a very robust environment.”

Additionally, Vieth said, “We are on the cusp of significant capacity additions coming online as today’s orders are converted into tomorrow’s capacity. Hence, the rate of freight growth is a critical factor.” He explained, “The upside of the cycle is marked by demand outstripping supply, while the downside is inevitably led by supply meeting and then exceeding demand.”

Category: Featured, General Update, News

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