For-Hire Trucking Index: Supply-Demand Balance Improves in July

The latest release of ACT’s For-Hire Trucking Index showed an increase in the supply-demand balance, rising to 58.0 seasonally-adjusted in July, from a 54.0 reading in June.

“Both freight volumes and rates improved in July from June on a seasonally-adjusted basis. However, capacity growth also picked up, keeping the July supply/demand balance less tight than the 2017/2018 average. We see a gradual balancing taking place as the industry responds to strong demand,” said Tim Denoyer, ACT Research’s Vice President and Senior Analyst.

As part of this month’s survey, ACT Research queried fleets about their load turndowns, asking whether they are seeing more, less or the same number. Denoyer commented, “Results were split evenly overall, with a slight advantage in the ‘same’ column.” As one respondent put it, ‘We turn down so many loads for lack of capacity it is nearly impossible to keep track [and] it has been this way for nearly a year now.”

The July fleet purchase intentions reading indicated an uptick in equipment demand, with 62% of respondents planning to buy trucks in the next three months. ACT Research believes the increase is related to the record order cycle of the past year starting to be built in greater numbers. Over the past 12 months, the buying index has averaged a strong 58% reading, on a seasonally-adjusted basis.

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