ECONOMIC WATCH: Driver shortage, low truck production to push up spot market rates

by Today's Trucking

COLUMBUS, Ind. – The U.S. CARES Act is incentivizing laid-off truck drivers to stay home, and creating a driver shortage, which is pushing up spot market rates.

That’s according to ACT Research’s Freight Forecast: U.S. Rate and Volume Outlook report. Its survey-based measure of the direction of spot rates turned to a 10% year-over-year increase this month, in a “sharply positive reversal,” according to the industry analyst.

(Source: ACT Research)

“The pandemic has caused twin supply shocks in the freight market. First, the CARES Act is incentivizing the unemployed to not come back to work, creating a near-term driver shortage. And second, while there are still plenty of parked trucks at the moment, low truck production this year will tighten equipment capacity over the medium term,” said Tim Denoyer, vice-president and senior analyst with ACT.

“We expect this to cause a bit of back and forth in spot rates, but we see the medium-term trend moving higher on tighter supply and recovering demand.”

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  • There is no shortage of truck drivers many of them are home with me kids . In Ontario Canada many have got temporary job cleaning or working to support old people or as security often in the range of 25 plus per hour . A certain group is housing at risk truck drivers in Ontario at hotels and private homes. Both sides of the border homeless and truck drivers and nursing home workers have been told to work with out properly protection.