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.
“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.”
Have your say
We won't publish or share your data