{"id":2731,"date":"2019-12-05T15:44:44","date_gmt":"2019-12-05T15:44:44","guid":{"rendered":"https:\/\/cantruck.ca\/act-trucking-faces-headwinds-in-2020\/"},"modified":"2025-01-10T16:46:26","modified_gmt":"2025-01-10T16:46:26","slug":"act-trucking-faces-headwinds-in-2020","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/act-trucking-faces-headwinds-in-2020\/","title":{"rendered":"ACT: Trucking Faces Headwinds in 2020"},"content":{"rendered":"

Business conditions in 2019 have been more challenging for carriers last year, with more projected sluggishness in 2020, said ACT Research President Kenny Vieth, who lead an economic session at\u00a0CCJ<\/em>\u2018s Solutions Summit<\/a>\u00a0in Scottsdale, Arizona.<\/p>\n

Tax cuts in 2017 boosted activity last year, but tariffs threw cold water on it mid-year and accelerated the U.S. economy\u2019s return to a more normal trend during 2019, he explained.<\/p>\n

\u201cIn the first quarter of 2018, the world was awash in manufacturing good news,\u201d he said, adding tariffs quickly started to suppress that growth. \u201cTariffs have been the driver in slowing down the entire global economy.\u201d<\/p>\n

Tariffs and a looming trade war raise the risk of an economic recession, added Vieth, who noted that an industrial recession is already underway in the U.S., which has led to a freight recession across all segments.<\/p>\n

\u201cThe evidence overwhelmingly suggests 2020 is going to be a very, very tough year,\u201d he said. \u201cFreight recovery is dependent on the speed at which equipment supply and freight demand are brought back into line.\u201d<\/p>\n

Active capacity is up 10% over early 2018 \u2013 the fastest fleet capacity growth since 1999 \u2013 but Vieth said re-emerging productivity trends negate a still-growing economy.<\/p>\n

Freight down markets, Vieth said, tend to last from 1 to 2 years, and added \u201cwe\u2019re really a full year into this at this point.\u201d He expects freight to stabilize, perhaps even grow, in 2020 and into 2021.<\/p>\n

The resolution of\u00a0trade stalemate between the U.S. and China, Vieth said, has a high upside for trucking as it would \u201caccelerate the global economy, spurring a strong rebound in commodity pricing and machinery demand.\u201d<\/p>\n

Vieth said he expects the economy to return to 2% GDP growth in the second half of 2020, pegging the probability of a recession at 30-35%. However, Vieth noted the slow growth economy \u2013 and its susceptibility to swings in trade struggles \u2013 are key drivers in a potential recession threat.<\/p>\n

\u201cThe slower something [the economy] moves,\u201d he said, \u201cthe easier it is to stop it.\u201d<\/p>\n

Full CCJ story here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Business conditions in 2019 have been more challenging for carriers last year, with more projected sluggishness in 2020, said ACT Research President Kenny Vieth, who lead an economic session at\u00a0CCJ\u2018s…<\/p>\n","protected":false},"author":2,"featured_media":255,"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],"tags":[677,30,21,33,357,174,35,24],"class_list":["post-2731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","tag-act","tag-capacity","tag-economy","tag-freight-market","tag-gdp","tag-productivity","tag-recession","tag-supply-chain"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2731","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=2731"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/255"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=2731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=2731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=2731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}