Freight economist Noel Perry (Transport Futures) provided some predictions and facts for what’s ahead in capacity, trade, and the end of a nine-year economic recovery period.
When GDP rises above four percent, freight grows and the truck market tightens. Two positive details of the Census Bureau’s release correlate to strong freight growth: a healthy rise in goods production and a trade balance improvement. Two negatives are weak investment and inventory liquidation.
The positives easily outscored the negatives, so growth was strong for both GDP and freight. Freight grew by 8 percent in the first half of 2018, according to the American Trucking Associations, a number consistent with the GDP release.
Read the full article.