Spot rates decline, economic headwinds remain

ACT Research is adjusting its economic forecasts slightly lower as the U.S. Federal Reserve continues to act on inflation concerns and spot rates decline.

“Inflation looks more stubborn and the [U.S.] Federal Reserve’s increasingly resolute rhetoric shows a willingness to do whatever is required to bring inflation to long-term targets of around 2%,” president and senior analyst Kenny Vieth said in a press release.

“Changes to economic expectations are even more impactful to the freight economy: ACT’s freight composite drops as rates sensitive economic sectors (durables, investment, housing) are disproportionally impacted.”

Spot rates continued to dip in September, averaging US$1.96 net fuel and down 3% from August, while the seasonally adjusted spot rate declined 4%.

“Anecdotes indicate that contract rate negotiations are running south of -10%,” Vieth added.

Kenny Vieth
Kenny Vieth (Photo: ACT Research)

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