Truckload Spot Rates Experience First Significant Upswing into 2023

ACT research reports “While market conditions remain broadly loose, we’re seeing more signs of slowing supply, key to the bottoming process.”

Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said, “Truckload spot rates experienced their first significant upswing in the past year from late November into early January, and the spread between spot and contract rates has started to tighten.” He added, “While market conditions remain broadly loose, we’re seeing more signs of slowing supply, key to the bottoming process.”

Denoyer shared, “Slowing supply is key for the US truckload market to transition from the late-cycle stage experienced in 2022 to the cycle-bottom phase which features a thinning of marginal capacity amid lower rates, preceding an early-cycle market tightening.“ He concluded, “Because rates are now far below costs in some cases, the market may experience both the cycle-bottom and early-cycle phases in 2023.”

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