COLUMBUS, Ind. – Trucking companies are enjoying volume growth and pricing power that ACT Research says would’ve been considered “nearly impossible to achieve” from an April vantage point.
In its latest Transportation Digest, ACT Research indicated the pace of trucking’s recovery could not have been predicted when Covid-19 forced an economic shutdown in the spring.
“While we were even then projecting a second half 2020 rebound, the slope of the upward trajectory that started in May has been as unexpected as it has been exponential,” said Kenny Vieth, ACT’s president and senior analyst.
“Final confirmation will come as we make our way through Q3 earnings season, but even now many aspects of the rebound continue to deliver upside surprises.”
Vieth added, “While severe, the 2020 recession was short-lived for some sectors of the U.S. economy, particularly transportation. The voluntary and mandatory shutdowns of March and April triggered a downturn of unprecedented severity, but the corresponding relaxation has brought a strong revival. Other aspects of this very unique business downturn include easy credit, a substitution of spending on services to goods, lower energy costs, robust e-commerce, and a home sales boom. It is fair to question whether some of these trends will have legs that stretch beyond Covid and its cure or mitigation, but for now they are influential for commercial vehicle markets.”
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