U.S., global economies going into a recession early next year
Summary
Pictured are Andrew Boyle, co-president of Boyle Transportation and American Trucking Associations Vice Chairman; Bob Costello American Trucking Associations chief economist and senior vice president; and MUFG Securities Americas Managing Director, Global Head of Investment Banking Capital Markets Strategy, Tom Joyce. Tom Joyce, MUFG Securities Americas Managing Director, Global Head of Investment Banking Capital Markets Strategy, speaking at the American Trucking Associations Management Conference and Exhibition in San Diego this week, noted that inflation and labor shortages plaguing the U.S. are global problems, adding that nearly every major global economy is experiencing inflation well above target levels. In 2021, carriers told shippers they couldnt haul all the freight, dumping loads into the spot market and spiking volumes more than 100%. Softening demand and inability to get new equipment helped shave a few thousand off the industrys truck driver shortage from 2021 to 2022 and is likely to do the same next year. Yet despite all the headwinds, Costello said there will be opportunities next year for smart operators, as fleets that bought expensive used trucks with unsustainable spot rates are likely to fold and further suppress capacity.