There are some mixed signals coming from the North American truck freight market, reports Trucknews.com.
Trucking conditions softened slightly in June, according to FTR, due to high financing costs and a slower retreat in diesel prices. But Loadlink has reported that Canada’s spot market was strong in July, pointing to a freight recovery. The U.S. spot market slid in the most recent week, with rates pulling back as per normal this time of year, reports Trucknews.com.
“Today’s market might feel as weak as it has been, but we continue to see a growing foundation for a recovery in financial conditions for trucking companies,” said Avery Vise, FTR’s vice-president, trucking.
“Strengthening capacity utilization sets the stage for firmer freight rates starting late this year and accelerating somewhat in 2025. Although nothing approaching the likes of 2021 is on the horizon, carriers should be seeing considerably more favorable conditions by next spring.”
Loadlink Technologies has reported what was a strong July for the Canadian spot market, despite a seasonal decline in load volumes. “Overall freight volumes were significantly higher compared to the previous year,” the company said, “while the month-over-month decline from June narrowed.”
Freight volumes were up 12% compared to last July, while in recent years they tended to slide more than 20% due to seasonal summer holidays and economic conditions. July load volumes were 8% off June numbers, but Loadlink attributes that to holidays in Canada and the U.S.
Adjusting for the holidays, daily average load volumes were up compared to June. The stronger performance is led by cross-border loads, accounting for 62% of all freight movements.
“While there was a seasonal pullback in loads, the industry maintained strong year-over-year growth and an impressive daily average increase in load volumes,” Loadlink said in a release. “Recent interest rate cuts may continue to support economic growth and increases in demand for freight services, all positive signs for the Canadian freight market.”
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