Freight Market Shows Signs of Bottoming Out, But Challenges Remain

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn
Stacks of containers on a port dock.

Photo by Chanaka

The latest Cass Freight Index data suggests that the U.S. freight market may be nearing a bottom, with signs of a new cycle emerging. While shipment volumes and expenditures continue to decline, there are indications of improving dynamics, such as rising real incomes and the end of destocking. However, challenges persist, including low Class 8 tractor production and falling rates. The market's transition to electric vehicles and the potential impact on jobs and wages add further complexity to the negotiations. Morgan Stanley's Truckload Sentiment Survey also projects an upturn in truck rates in the coming months.

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Jennifer Joslyn
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