he latest release of ACT Research’s For-Hire Trucking Index reflects the gradually recovering freight market.

The Supply-Demand Balance tightened by 2.2 points in December to 54.2, seasonally adjusted, from 52.0 in November.

Tim Denoyer, Vice President & Senior Analyst at ACT Research, commented, “With volumes stabilizing and capacity contracting, the for-hire Supply-Demand Balance has been signaling an impending increase in freight rates for a few months. Truckload spot rates are 12 percent above the seasonal pattern in January following the cold snap. While weather effects should revert in the coming months, freight is an outdoor sport, so the cycle will likely find a higher trajectory as the reversion happens amid tightening capacity and recovering demand.”

The Capacity Index decreased by 3.3 points m/m to 44.2 in December. For-hire capacity has contracted in seven of the past eight months, and decreased further as fleet purchase intentions cratered and driver availability fell further this month.

Denoyer added, “Capacity is still being added industry wide by private fleets, but declining US Class 8 tractor sales indicate this phenomenon is starting to slow. Unlike private fleets, for-hire capacity has been contracting, so as private fleet additions decline, tighter industry capacity should press rates up.”

The Driver Availability Index dropped noticeably, down 4.1 points m/m to 50.9 in December.

“The quality fleets in our survey have been safe havens for owner operators for the past couple years, but market dynamics seem to have finally caught up with the driver market. While bad news for the drivers, it’s key to tightening the freight market. While weather is the larger near-term factor, driver availability is a critical longer-term factor also starting to help press spot rates up,” Denoyer concluded.