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Truck tonnage in November was up compared to October but down year over year, according to the American Trucking Associations.
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FTR is reporting that its Trucking Conditions Index for October 2020 literally went off the charts to the highest reading the research firm has ever recorded.
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The huge increases in freight volume since the economic contraction are slowing, but the trucking industry still looks to see a strong 2021 in terms of both demand and rates.
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Both ACT Research and FTR report robust Class 5-8 truck orders in November.
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When we drilled into third-quarter GDP to look at the segments of the economy linked to freight demand, the results far exceeded our forecast.
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A drop in the American Trucking Associations' truck tonnage numbers in October could be another sign that the economic recovery is slowing, but it also may be a case of seasonal trends thrown off by the pandemic.
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Although the economic recovery from the COVID-19 shutdown is definitely not a “V” shape, it’s growing steadily – but don’t expect to be back where we were until mid-2022, said Jeffrey Rosensweig of Emory University.
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Pent-up consumer demand from COVID-19 shutdowns continues to buoy spot freight rates, but a still-weak manufacturing sector has experts at FTR cautioning that things could turn downward again.
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The sudden, devastating economic collapse caused by the COVID-19 pandemic was so unprecedented, that even seasoned economists admit it’s difficult to predict what the recovery will look like.
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Improvements in industrial production and housing may help drive a truck freight recovery, but spikes in COVID-19 cases in many parts of the country and questions about what Congress may or may not do leave a lot of uncertainty in the forecast, according to analysts at FTR.
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