ACT Research says freight volumes will hit additional headwinds in coming quarters. At the same time, ACT says, tariffs will raise equipment prices and heavy truck makers are reducing production.
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"As the economy is likely to absorb the effects of tariffs over the next several months, our freight demand outlook remains cautious," says Tim Denoyer, ACT Research's vice president and senior analyst.
The company predicts North American Class 8 production is set to fall more than 25% from the first half of the year, ACT says.
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"The silver lining of lower vehicle production and lost manufacturing jobs is that tighter capacity will likely drive freight back to the for-hire market in the future," Denoyer says. "As goods prices rise, lower unit demand may loosen market equilibrium for some time before the effects start to support freight rates, and we see a soft holiday shipping season."
