Rates remain under pressure: ACT

by Truck News

COLUMBUS, Ind. – ACT Research reports contract truckload rates fell to US$2.28 per mile in the third quarter, down 2% year-over-year.

In its ACT Freight Forecast, U.S. Rate and Volume Outlook, the industry forecaster suggested further declines are in store.

“We’re seeing evidence that a bottoming process is beginning in the truckload cycle from truck order and survey data,” said Tim Denoyer, ACT Research’s vice-president and senior analyst. “It will be gradual, but we think spot rates will turn positive in mid-2020. Meanwhile, for-hire freight volume continues to be soft, pressured by ongoing private fleet capacity additions, so we don’t think we’ve seen the worst of the contract rate pressure yet.”

He added, “We caution not to jump to the conclusion that capacity is tightening because of carrier failures. Those are not unusual in this business and the fact is U.S. fleets bought more new Class 8 tractors in September than any month in history. So, capacity is not yet tightening, and build plans are still above replacement for the next six months. Rather, roughly 10,000 net new tractors were added to U.S. highways in September, mainly by private fleets.”

At the same time, freight has softened due to tariffs imposed Sept. 1, as well as the strike at GM.

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    • I have been saying this for 30 years.the only shortage is people willing to work for less money at year end than they did 20 years ago. The rate per mile you get is higher but the miles are 25% lower. The rates need to up 25% to cover this loss not the 5% they are paying

  • Can you tell me as to who is paying these rates that you mentioned in the article? we as the small trucking industry are getting the rates around $1.40 to $1.60 Canadian funds per mile…. i do not know if the brokers are charging the shippers these rates that you are mentioning…
    To me there is no Standard left in this industry… I am the owner of a C-TPAT certified company but we are not too big… It is really becoming hard to survive these days in this industry.

    • Any under _2.00 CD plus tolls is a loosing game. These more trucks than freight. Many truck drivers doing other jobs at these very low rates. My truck is parked and iso ate many of my friends trucks. Construction is better pay or a government job. A man with 2 kids and a wife is better off on disability than running his truck today.