ACT: Freight cycle likely nearing bottom
Summary
ACT’s Trucking Volume Index was in contraction territory for the eighth month of the past 11 in February at 41.3 (seasonally adjusted) from 51.6 in January. “The soft freight market persists as inflation continues to impact consumers’ purchasing power, and recent bank failures and job cuts make recession more likely,” said Tim Denoyer, vice president and senior analyst at ACT Research. ACT said slower capacity growth this month is a key sign the bottoming process is happening, as fleets begin to respond to softer market conditions. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. “This, along with the acquisition of Lelantos Energy and the many projects under development, will help cement our future growth and achieve our goals of being an established and profitable company.”