May Freight Forecast: Slow Freight and Fast Tractor Sales Pressure Rate Outlook

Class 8 tractor retail sales are on fire

ACT Research released the May installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report covering the truckload, intermodal, LTL and last mile sectors.

“Freight remains soft, as expected, and while we see reasons for recovery in the second half of 2019, escalating trade tensions raise the risk of freight recession,” said Tim Denoyer, ACT Research’s Vice President and Senior Analyst.

Denoyer continued, “Class 8 tractor retail sales are on fire, adding capacity to the market at an unfortunate time for truckers. Shippers are increasingly targeting freight cost savings, likely emboldened by attractive rates in the spot market.”

The report noted that dry van truckload (TL) spot rates, net fuel, fell nearly 19% y/y in April and more than 3% on a month-over-month basis from March, more than twice the historical average seasonal drop in April.

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