Is a major economic slowdown coming this summer?
Even though the economy and freight markets reflect modest growth. Transportation cost are rising and the new regulations going into effect later this year will cause a major shortage in the trucking industry. The FTR is expecting the Shippers Conditions Index (SCI) reading to drop another five points from where it is now by mid-summer.
These rules will be a new burden for carriers to find available truck drivers in a market that already has a major deficit as many truckers are leaving due to retirement and other issues. This will have a negative effect on the operations of many shippers to be able to move their freight. Thus the truck companies left in the industry will see this as a perfect opportunity to raise rates and everyone will be directly impacted by these hikes in rates.