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Recovery into Constrained Capacity Driving Rates to New Highs

| September 14, 2020

ACT Research says improving freight demand from services-to-goods substitution has left inventories in need of restocking

Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said, “The nearly two-year freight recession is finally ending, but the pace of capacity re-engagement is excruciatingly slow for shippers, hindered by unprecedented, if fading, stimulus.”

He continued, “Truckload capacity has been tight for a few months, and intermodal capacity tightness added fuel to the fire in August with West Coast imports surging. Next comes spillover into LTL.”

Denoyer concluded, “Improving freight demand from services-to-goods substitution has left inventories in need of restocking. With freight demand improving and drivers uniquely short, higher freight rates are a one-way bet at this point, and higher driver pay isn’t far off.” 

Category: Featured, General Update, Management, News

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