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Pandemic Response Creates Driver Shortage, Pulling Rate Cycle Forward

| July 14, 2020

ACT Research says they see the medium-term trend moving higher on tighter supply and recovering demand

Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said, “Our Spot Leading Indicator, a survey-based measure of the direction of rates, turned to a 10% y/y increase this month in a sharply positive reversal.”

He continued, “The pandemic has caused twin supply shocks in the freight market. First, the CARES Act is incentivizing the unemployed to not come back to work, creating a near-term driver shortage. And second, while there are still plenty of parked trucks at the moment, low truck production this year will tighten equipment capacity over the medium term.”

Denoyer concluded, “We expect this to cause a bit of back and forth in spot rates, but we see the medium-term trend moving higher on tighter supply and recovering demand.”

Category: Driver Stuff, Featured, General Update, News, Transit News

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