{"id":3258,"date":"2021-12-03T18:59:48","date_gmt":"2021-12-03T18:59:48","guid":{"rendered":"https:\/\/cantruck.ca\/ata-economist-freight-market-poised-to-stay-strong-amid-disruptions-in-2022\/"},"modified":"2025-01-10T16:43:48","modified_gmt":"2025-01-10T16:43:48","slug":"ata-economist-freight-market-poised-to-stay-strong-amid-disruptions-in-2022","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/ata-economist-freight-market-poised-to-stay-strong-amid-disruptions-in-2022\/","title":{"rendered":"ATA Economist: Freight Market Poised to Stay Strong Amid \u00a0Disruptions in 2022"},"content":{"rendered":"
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Low labour force participation and tight transportation capacity in the coming year will keep freight demand high \u00a0as inflation is expected to worsen, according to\u00a0<\/span>American Trucking Associations\u2019<\/a>\u00a0<\/span>Chief Economist Bob Costello.\u00a0<\/span><\/p>\n<\/div>\n

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During a Nov. 30 U.S. Bank webinar, Costello said he expects freight will remain \u201crobust\u201d in 2022, with inventory-to-sales ratios at an all-time low, reports Fleet Owner.<\/p>\n<\/div>\n

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\u201cThat\u2019s why you see a lot of retailers try to get in as much product as possible,\u201d he said. \u201cPeople still have high expectations as to how fast stuff is going to get to their doorstep. So even if sales slow a bit early next year, retailers will have to bring in a lot of freight to get us back to where we were prior to the pandemic.\u201d<\/p>\n<\/div>\n

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Those healthy freight expectations, however, are in an environment where the labour force participation rate remains \u201cstubbornly low,\u201d Costello pointed out. There are more than 10 million job openings and a labor participation rate below 62%.\u00a0<\/span><\/p>\n<\/div>\n

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\u201cIt\u2019s going to get worse,\u201d Costello advised, saying he expects more than 7% year-over-year increases for the CPI. \u201cThe Federal Reserve will continue to accelerate their reductions and purchases enough that by March, quantitative easing will be over. And once that is over it opens the door for interest rate hikes.\u00a0<\/span><\/p>\n<\/div>\n

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\u201cThey don’t set interest rates for today,\u201d he added. \u201cThey are setting interest rates today for 12-18 months down the road. There is a lot of debate on whether they will need to do this sooner rather than later.\u201d<\/p>\n<\/div>\n

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By the end of next year, however, Costello said he expects inflation will decrease to 3% year-over-year, rather than staying at the higher 6% to 7%.\u00a0<\/span><\/p>\n<\/div>\n

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\u201cThe three buckets of freight are good, but inflation is going to get worse than it is right now,\u201d Costello advised. \u201cThe pandemic is something we are going to have to live with. It\u2019s something we are going to get used to, but it can still punch us in the gut.\u201d\u00a0<\/span><\/p>\n<\/div>\n

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\u201cNow, you don’t need an economist here to tell you when you have a situation where you have demand outstripping supply and what happens to price? It goes up,\u201d Costello advised. \u201cIt is no different in the truck driver market.<\/p>\n<\/div>\n

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As to how\u00a0<\/span>vaccine mandates,<\/span> come mid-January, all drivers will have to show proof of vaccination while entering Canada, Costello pointed out.\u00a0<\/span><\/p>\n<\/div>\n

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\u201cYou should prepare for mid-January that all drivers will have to show proof of vaccination going into Canada and coming into the U.S.,\u201d he said.\u00a0\u00bb This is a real concern. Stay tuned on that. We will have more to come.\u201d<\/p>\n<\/div>\n

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

Low labour force participation and tight transportation capacity in the coming year will keep freight demand high \u00a0as inflation is expected to worsen, according to\u00a0American Trucking Associations\u2019\u00a0Chief Economist Bob Costello.\u00a0…<\/p>\n","protected":false},"author":2,"featured_media":0,"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":[16,1493,28],"tags":[213,30,40,77,21,33,306,836,90,24],"class_list":["post-3258","post","type-post","status-publish","format-standard","hentry","category-business-conditions","category-covid-19","category-labour-hr-driver-shortage","tag-ata","tag-capacity","tag-cross-border","tag-driver-shortage","tag-economy","tag-freight-market","tag-freight-volume","tag-inflation","tag-labour","tag-supply-chain"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/3258","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=3258"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/3258\/revisions"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=3258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=3258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=3258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}