ACT Research Report Signals Weaker October Freight Market

An ACT Research report that showed the first drop-off in October truck freight since 2009 is the latest indicator that weakness in the economy is being reflected in the trucking sector.

The consulting firm’s report said its index for October showed a decline to below 50, signaling a weakening in freight markets at a time when business should be accelerating. The October reading was the lowest for that month since ACT began doing its report in 2009 and the lowest for any month since late 2012.

ACT’s report was released one day after Cass Information Systems’ index of freight from trucking, rail and other modes showed a 5.3% decline from October of last year. Cass, whose index primarily is based on trucking, bases shipments on freight payments processed. Cass reported its index for October was the lowest in four years.

“Freight is definitely uninspiring,” said Kenny Vieth, president of ACT, whose index is based on a survey of fleets. “Forty-five percent of the fleets in the survey reported a decrease in freight in October, a time when freight should be increasing ahead of the holiday season.”

He added, “Anecdotally, we are hearing that shippers are coming into the market early for bids, which underscores the softening in the supply-demand dynamic as they look to take advantage of current weakness."

ACT’s October index reading of 46.3 was slightly below September, when markets also were declining.

“This month’s decline was much sharper than in recent years and can be directly correlated to falling imports and exports as well as decreased domestic manufacturing levels,” the Cass report said, also citing bloated inventories.