According to American Trucking Associations’ Chief Economist Bob Costello, trucking’s “slow, and choppy climb off of the bottom continued in October.”
After hitting a low in January of this year, …”tonnage is up a total of 3%, plus the index is up sequentially in three of the last four months,“ Costello said, indicating that the freight market has improved – but very slowly – since January. It must be said that ATA’s indices are dominated by contract freight as opposed to spot rates.
Just a day ago, Covenant Logistics’ co-founder and CEO David Parker predicted that the peak season, which started a week ago, will see positive growth through the holiday season. This is the first time in three or four years that peak freight is trending upward.
Trucking economists are closely watching interest rate cuts. Traditionally, rate cuts presage an increase in buying by three to six months, which could mean a strong trucking uptick in March or April as both businesses and consumers are ramping up their purchasing. Trucking also serves as an economic barometer because trucks carry 72.6% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.
ICSA will continue to keep you informed on the economy as the U. S. transitions to a new president and administration.
Every year, TAT (formerly called Truckers Against Trafficking) honors a member of the trucking, bus or energy industry, whose direct actions help save or improve the lives of those exploited or prevent human trafficking from taking place, with the Harriet Tubman Award
Now, however, with Republican control of both houses of Congress and the White House (and, some say, the Supreme Court) I am optimistic that trucking will get a fairer shake than it has during Biden’s term in office.
Notes from a recent stakeholder meeting covering FMCSA’s proposed new registration system. It should be noted that FMCSA has completed only the workflow for new individual motor-carrier registrants.