The freight market will continue "bouncing along the bottom near term, with some holiday volatility and a change in direction on the way next year," according to the latest release of the Freight Forecast, U.S. Rate and Volume OUTLOOK report.
“We see retail sales turning back to real growth this holiday season, after over a year of declines," said Tim Denoyer, ACT Research’s senior analyst, in a statement.."The acceleration in real disposable income growth as inflation slowed sharply this year, and the ongoing strong labor market, support a recovery in goods demand.
"The end of destocking, rise in imports, and recent easing in oil prices improve our confidence that peak season will end on a higher note for freight demand. But although private fleet capacity expansion continues to pull freight from the for-hire market, we think equipment purchasing patterns are changing, which should propel the freight cycle forward in 2024.”
Spot load postings remain low, and while spot equipment posts have declined, the rebalancing of capacity is making little net progress with the industry still adding capacity.
Slowing Class 8 tractor sales—recent selling rates are already down 20% from the record 1H’23 level—means fewer new additions, and the pace of fleet exits remains historically elevated, so the removal of overcapacity is gaining momentum under the surface.
“With freight volumes broadly starting to pick up, the spot market is still loose heading into winter, but we expect the trajectory of rates to shift in 2024,” Denoyer concluded.