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Freight Forecast: Spot Rate Spike Is Here, Contract Rate Increases to Follow

August 11, 2020, 07:10 AM
Filed Under: Transportation

ACT Research released the August installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report. Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said, “A freight recovery amidst a driver shortage has driven an acutely tight truckload market, with spot rate measures up 30 percent year over year. Looking forward, we now see a new phase of the pandemic, with tightness easing as stimulus benefits fade. The spike in used truck sales shows that process underway.”

He added, “Our Spot Leading Indicator, a survey-based measure of the direction of rates, is now consistent with 30 percent year over year increases in spot rates, but with latent equipment capacity and additional stimulus looking unlikely, a peak seems near.”

Denoyer concluded, “While the path ahead includes puts and takes, we see medium-term freight rate trends moving higher on tighter supply and recovering demand.”

This monthly 56-page ACT Freight Forecast report provides three-year forecasts for volumes and contract rates for the truckload, less-than-truckload and intermodal sectors of the transportation industry. For the truckload spot market, the report forecasts rates for the next 12-15 months, and this month introduced a forecast for Q3’21. The Freight Forecast provides unmatched detail on the freight rate outlook, helping companies across the supply chain plan their business with greater visibility and less uncertainty.

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