US truckload capacity down 14.1pc as labour, equipment, fuel, financing costs rise

A WALL STREET's Longbow Research Truckload Barometer shows supply tightening after a month of slackening demand and joins others in predicting tighter capacity to come because of rising labour, equipment, fuel and financing costs.


While other indicators show a slowing recovery, this weekly index increased 14.1 per cent week-to-week in the last week of May, the research firm said in a June 1 note to investors, reported Newark's Journal of Commerce. That jump followed a 6.1 per cent rise the previous week, after dropping for several weeks in April and early May.


The index fell 9.2 per cent in mid-May, which was its year-on-year decrease since late 2009. "Recent channel checks have noted a slight pullback in freight demand in late April and early May," the Longbow note said.


The long Memorial Day weekend is said to have been responsible for the dip in capacity as drivers returned home. Seasonal produce demand may also be tightening truckload capacity in parts of the country.
(Source:http://www.schednet.com)