ACT: For-hire trucking market showing some signs of life

ACT's for-hire trucking volumes chart

ACT Research released its latest For-Hire Trucking Index on Tuesday, showing some signs of life in the for-hire trucking market. 

"Overall, freight demand is growing, but private fleet growth is still resulting in choppy for-hire demand conditions," says Carter Vieth, research associate at ACT. "Durable goods consumption rose 4.2% quarter-over-quarter SAAR in Q2, imports and inventories are growing, and cross-border shipments are increasing." 

[RELATED: Used Class 8 prices fell in September, ACT reports]

The volume index decreased five points in September to 49.5, seasonally adjusted, from 54.5 in August. 

"Inconsistency may persist in the near term following two large hurricanes, a port strike and likely another one in January," Vieth says. "With private fleet costs well above for-hire carriers, we expect shippers to eventually shift freight back to the for-hire market, as low orders suggest is starting to take shape." 

ACT's for hire fleet capacity chart

The capacity index increased 3.2 points month-over-month, from 47.6 in August to 50.8 in September. 

"This month's reading marks the first time in 14 months that capacity has expanded, albeit .just slightly," Vieth says. "This month's uptick likely reflects the more stable demand and rate environment, which no longer necessarily signal further retrenchment." 

[RELATED: MacKay's Blodgett addresses recession potential and market conditions at IMPACT Conference]

ACT's supply-demand balance chart

The supply-demand balance decreased in September to 48.8 from 56.9 in August. Freight volumes decreased as fleet capacity increased, ACT says. 

"Private fleet expansion, which is not captured in this indicator, is resulting in a longer period with the market close to balance than in past cycles," Vieth says. "Despite the past few months of elevated tractor sales due to mirror supply chain issues in April, slowing U.S. Class 8 tractor sales from here will help to further rebalance and move the cycle forward, albeit slowly. Continued strong U.S. economic growth is leading to improved goods demand and will make its way to the for-hire market as private fleet growth slows." 

Learn how to move your used trucks faster
With unsold used inventory depreciating at a rate of more than 2% monthly, efficient inventory turnover is a must for dealers. Download this eBook to access proven strategies for selling used trucks faster.
Download
Used Truck Guide Cover