Wall Street Journal Says Trucking Industry Heading Into a Downturn Pushing Rate Prices Lower
If you keep up with Trucker to Trucker, you know that there has been a literal trucking boom going on. Orders are up, miles are up, freight tonnage is up and jobs are to be had in virtually any sector of the trucking business.
Optimism has been high for the last few years, and rightly so. A good and healthy trucking industry means there is a good and healthy economy. Spending, pick-ups and freight deliveries always go hand in hand.
Of course, no one has ever expected the industry, as a whole, to keep growing and expanding as fast as it has. The laws of supply and demand mean that, eventually, as both businesses and consumers become satiated with goods and supplies, orders for freight movement will slow down and things will go back to status quo.
This is exactly the prediction that has come from the Wall Street Journal. Private trucking and logistics executives are telling investment firms that spot marketing, also known as the cash market goods or the physical market, is recessing. These marketing goods are the type that are generally delivered within a time frame of one month, or less. Reduced marketing freight indicates that the economy, as well as the trucking industry, is beginning to slow down.
The best example of this is gasoline deliveries. In the summer, with demand high, the spot market grows to keep gas stations filled with gas. In the winter, with people traveling less, the spot market for petroleum slows according to the decreased demand for gasoline.
Knowing this, current indicators signal that the recent trucking boom may be coming to an end. But until the latest freight moving facts and figures come out, we'll all have to wait and see.
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