Trucking Industry May Be Nearing End of Freight Recession
Signs point to the trucking industry nearing the end of the current freight recession, with trucking revenue still high despite reduced demand. A market turnaround, however, is yet to be seen.
Although the trucking industry is facing a freight market recession, there are indicators that suggest it may be nearing the bottom of the downturn. Seasonally adjusted trucking ton-mile index, which implies freight demand, shows a minor rise of 0.6% from March to April 2023, yet is down 1.6% compared to April 2022. Despite this, trucking revenue remains elevated compared to pre-pandemic levels, suggesting that capacity isn't exiting as rapidly as expected. The near future likely sees the industry remaining in this trough without a significant shock event to stimulate demand.
The US labor market is showing signs of stabilization as the rate of voluntary job quitting approaches pre-pandemic levels and employers implement better retention strategies.
