{"id":2499,"date":"2018-10-02T17:45:53","date_gmt":"2018-10-02T17:45:53","guid":{"rendered":"https:\/\/cantruck.ca\/joc-no-immediate-end-to-bullish-us-truck-market-capacity-crunch\/"},"modified":"2025-01-10T16:47:41","modified_gmt":"2025-01-10T16:47:41","slug":"joc-no-immediate-end-to-bullish-us-truck-market-capacity-crunch","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/joc-no-immediate-end-to-bullish-us-truck-market-capacity-crunch\/","title":{"rendered":"JOC: No Immediate End to Bullish\u2019 US Truck Market, Capacity Crunch"},"content":{"rendered":"<p><span lang=\"EN-US\">Shippers looking for some relief in capacity leverage may have to wait until at least the latter half of 2019 \u2013 and perhaps longer \u2013 based on currently available market data and projections of US economic growth, according to the Journal of Commerce. <\/span><\/p>\n<p><span lang=\"EN-US\">The US economy seems able to absorb capacity faster than trucking companies can add trucks and drivers, points out JOC. <\/span><\/p>\n<p><span lang=\"EN-US\">\u201cCarriers continue to scramble to get enough trucks on the road to handle the robust freight growth,\u201d research firm FTR said last month when announcing a 153 percent increase in Class 8 truck orders in August. \u201cThe surging economy and vibrant manufacturing sector are stretching the logistics system to the limit.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">However analyst Noel Perry thinks truck capacity has reached its peak as the decline in spot rates will continue, pulling down contract rates in 2019.<\/span><\/p>\n<p><span lang=\"EN-US\">\u201cPricing and profits will stay strong in the contract segment through the end of the year, at least, and perhaps through the end of the 2019 first-half seasonal peak,\u201d Perry said in an Aug. 3 column published on his<span class=\"apple-converted-space\">\u00a0<\/span><a href=\"https:\/\/transportfutures.net\/\" target=\"_blank\" rel=\"noopener\">Transport Navigator<\/a><span class=\"apple-converted-space\">\u00a0<\/span>website. In early September, however, pricing relief still seems far off.<\/span><\/p>\n<p><span lang=\"EN-US\">Trucking economist Donald Broughton of Broughton Capital has a different view. Rather than being in the ninth year of an aging economic recovery, the United States is \u201cin the beginning of a recovery cycle,\u201d Broughton told journalist Evan Lockridge on the \u00ab\u00a0PrePass Eyes on the Road\u201d<span class=\"apple-converted-space\">\u00a0<\/span><a href=\"https:\/\/prepass.com\/2018\/09\/10\/expect-good-times-to-continue-for-trucking-and-the-economy-says-expert\/\" target=\"_blank\" rel=\"noopener\">podcast<\/a><span class=\"apple-converted-space\">. <\/span><\/span><\/p>\n<p><span lang=\"EN-US\">\u201cThe 2009-2014 period, led by fracking, was the first industrial-led recovery we\u2019ve seen since 1961,\u201d Broughton said. \u201cThere really wasn\u2019t a consumer recovery until 2017. We\u2019re now just 18 months into that recovery.\u201d Broughton, author of the Cass Freight Index Report, isn\u2019t expecting a downturn.<\/span><\/p>\n<p><span lang=\"EN-US\">Meanwhile, there are signs shippers, 3PLs, and trucking operators are finally recovering from the supply chain network disruption caused by the introduction of the US<span class=\"apple-converted-space\">\u00a0<\/span><a href=\"https:\/\/www.joc.com\/special-topics\/electronic-logging-device-mandate\">electronic logging device<\/a><span class=\"apple-converted-space\">\u00a0<\/span>(ELD) mandate last December and full out-of-service enforcement of the mandate as of April 1.<\/span><\/p>\n<p><span lang=\"EN-US\">\u201cI think by and large people have gotten over the hump,\u201d said Andrew Lynch, president of Zipline Logistics, a Columbus, Ohio-based 3PL. \u201cDrivers and carriers have gotten over the hump in that they know how to operate. I don\u2019t necessarily know that the shipping world has gotten over the hump.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">\u201cThere are still organizations not putting enough weight on holding a driver for more than two hours.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">Shippers need to apply lessons learned from the multiple crises of 2018 \u2014 tight capacity, price increases, the ELD effect \u2014 as they approach 2019. Next year won\u2019t be as \u201cnasty\u201d as 2018, Zipline\u2019s Lynch said, but \u201cI don\u2019t see freight markets plummeting back to where they were in 2016 for a very long time.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">Full <a href=\"https:\/\/www.joc.com\/trucking-logistics\/%E2%80%98bullish%E2%80%99-us-truck-market-last-well-2019_20180911.html\">JOC article here<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shippers looking for some relief in capacity leverage may have to wait until at least the latter half of 2019 \u2013 and perhaps longer \u2013 based on currently available market&#8230;<\/p>\n","protected":false},"author":2,"featured_media":875,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16,54],"tags":[30,21,447,33,166,1015,98,24],"class_list":["post-2499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","category-technology-equipment","tag-capacity","tag-economy","tag-eld","tag-freight-market","tag-freight-rates","tag-pricing","tag-shippers","tag-supply-chain"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=2499"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/875"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=2499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=2499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=2499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}