Freight Market Outlook: Modest Gains Anticipated
FTR forecasts a positive turn for dry van and reefer spot rates despite an industry-wide loss of capacity and concerns over economic inflation.
FTR Transportation Intelligence predicts that the downward trend of spot rates for dry van haulers could be nearing its end, with modest gains projected through the year's end. FTR Trucking Vice President Avery Vise stated that the freight outlook is set for slow-growth, but it could be the bottom for dry van and reefer rates in the spot market. Vise also shared that the trucking industry is losing capacity as various entities are seeing a loss of authority at an accelerating rate.
Inflation and Its Impact on the Freight Industry
Despite the moderate economic inflation, the freight industry continues to grapple with higher costs. Avery Vise noted the potential for further interest-rate increases from the Federal Reserve due to persistent services inflation. He also addressed concerns about the drop in personal savings rates, which could signal future economic difficulties. However, Vise stated that the high levels of household reserves could mean the continuation of current consumption rates, offering some stability to the industry.