Driver capacity models suggest the record declines in freight rates should be creating more jobs as it generates the creative destruction needed to set up the next cycle, according to the latest freight forecast from ACT Research.
The US Rate and Volume Outlook report says rebalancing is under way, although slower than expected, and demand is poised to gradually recover the from soft levels of the past five or six quarters.
“The preliminary Bureau of Labor Statistics data set, which we think gets closest to drivers, added 2.3k jobs in May, defying gravity for now,” said ACT Research Vice President and Senior Analyst, Tim Denoyer.
“We estimate another 12,400 total revocations of operating authority and 2,950 net revocations in May, bringing the total contraction in the industry since last October to over 15k fleets.”
Denoyer added that the spot market is continuing to rebalance with net revocations still at record rates and predicts that demand fundamentals are likely to improve from here.
In other news, TIP Group has announced a milestone in its Nordic business expansion.