Freight remains strong as 2022 nears
While semiconductor shortages continue to separate Class 8 tractor production from demand, and trailer supply chain challenges present limited capacity. Strong freight rates resulted in overall stable market conditions. Freight volume and capacity utilization were not quite as favorable for carriers in August as they were in July. But more strong freight rates resulted
in overall stable market conditions which satisfies truckers and dispatchers. According to Cass Transportation, freight demand is anything but stagnant, and has been caged by supply constraints, which are likely peaking with the season. The extent to which constraints on equipment and driver supply ease in the coming months will largely dictate volume and rate trends. Freight demand fundamentals remain strong, based on a strong U.S. consumer balance sheet, inventory restocking, and an industrial sector struggling to grow into record orders with infrastructure stimulus likely on the way.
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