Port backups, rising commodity prices, more government stimulus in the U.S., and new truck backlogs are combining to create a positive rate environment for truckers.
ACT Research reported in its ACT Freight Forecast that spot market rates are set to rise.
“Pushing commercial vehicle demand forward, freight rates ended February at record levels, seasonally adjusted, and started March on an upswing,” said Tim Denoyer, ACT Research’s vice-president and senior analyst.
“With the nation’s ports backed up for months, commodity prices soaring, the manufacturing sector warming up, and the housing market already in full swing, there is unparalleled visibility to strong freight flows. We see more increases on the horizon with a very strong freight volume pipeline and Class 8 production restrained by semiconductor and other parts shortages. We see the latest federal Covid-19 relief package adding to both freight demand and the challenges of re-engaging supply, which presses our spot rate forecasts higher this month.”