Trucking Demand To Spark Economic Nightmare
Nobody saw this coming.
In a surprising turn of events, it now appears that an unexpected downturn in the demand for trucking could be an early signs of a possible recession being triggered.
According to Fox, Bank of America’s trucking research department found that shippers are no longer heavily dependent on truckers.
Analyst Ken Hoexter explained, “That is near freight recession level.”
“Respondents noted a softening demand outlook, loosening market, deteriorating rail service, and pricing softness in the market,” Hoexter said. “Shippers’ short-term positive outlooks fell to 39% from 50% last survey, neutral outlooks jumped to 43% from 39%, while negative outlooks were 18% from 11%.”
Another indicator showed that the demand for trucking collapsed to its lowest level since May 2020. It’s important to remember that the U.S. was still in the middle of the COVID-19 pandemic in May 2020.
