Tighter supply remains the main reason for accelerating rates, as discussed in the latest release of the Freight Forecast: Rate and Volume OUTLOOK report from ACT Research.

“The volume recovery seems delayed by a hopefully brief bout of inflation, and it will take time for the razor thin US savings rate to recover,” said Tim Denoyer, ACT Research’s Vice President and Senior Analyst. “But fuel prices are falling, tariffs are lower, inventories are tight, and import trends are improving, so a modest freight demand recovery remains likely later this year. But tighter supply is still the main driver of accelerating rates, and a lull in spot rate trends after the recent surge seems likely near term.

“The early cycle phase of the classic truckload market cycle, where the industry is today, is usually supply-led. Volumes still don’t look great, but the industry is heading towards the mid-cycle phase, with improving volume trends on the way. With truckload capacity pinched, the domestic intermodal market is in an unusual position of seeing that demand first,” Denoyer concluded.

The monthly 62-page ACT Freight Forecast report provides analysis and forecasts for a broad range of U.S. freight measures, including the Cass Freight Index, Cass Truckload Linehaul Index, and DAT spot and contract rates by trailer type for the U.S. and Canada. The service provides monthly, quarterly, and annual predictions for the TL, LTL, and intermodal markets over a two- to three-year time horizon, including capacity, volumes and rates.