The trucking business has been burgeoning through the pandemic, which sparked historic demand for durable goods. But a maelstrom of inflation, rising diesel prices and overcapacity in the trucking market is now causing a sudden tumble of freight rates.
Demand for freight has undeniably slowed. And, FreightWaves believes a recession in trucking might be next.
On Wednesday last week, the Cass Transportation Index Report declared that the freight market is in a slowdown, though the index’s experts said it’s too soon to declare a recession. Banks like Cowen and Bank of America have recently downgraded trucking stocks in their own notes to investors.
Dry van rates have tanked by 37% from December 31, according to an April 8 transportation note by a Bank of America analyst. Those rates are on the spot market and, while the spot market is just a fraction of the trucking world, spot numbers point to where contract rates will go.
Read more in an article from FreightWaves.