2023-06-02 07:07:52 ET
Bank of America's proprietary bi-weekly Truckload Demand Indicator for shippers' freight demand outlook for three months out decreased 4% sequentially to 42.6 from 44.3 last survey. The reading was down 27% year-over-year and is the 5th lowest level on record for the survey.
The Demand Indicator remained sub-50 for the 16th time in the past 18 issues of the survey and sub-60 for the 30th consecutive survey. Analyst Ken Hoexter noted the truckload demand indicator remains well below the 54.2 average level of the 2012, 2015, and 2019 freight recession periods.
Hoexter noted that a recent BofA conference, leading Intermodal carrier J.B. Hunt ( JBHT ) highlighted the ongoing freight recession as it warned there are no green shoots in demand nor changes in its record low bid compliance levels. Meanwhile, truckload carrier Schneider National ( SNDR ) noted that activity levels remain muted and truck broker Arrive Logistics forecast a soft 2023 freight environment with recovery in 2024. As an outlier, truck carrier KnightSwift Transportation ( NYSE: KNX ) said it observed a noticeable shift near the end of April. Also of note, the Port of LA saw a sequential step up in import volumes after troughing in March.
Trucking and logistics stocks: U.S. Xpress ( USX ), Knight-Swift ( KNX ), Yellow Corporation ( YELL ), Schneider National ( SNDR ), BEST ( BEST ), Landstar System ( LSTR ), ArcBest ( ARCB ), Radiant Logistics ( RLGT ), GXO Logistics ( GXO ), Saia ( SAIA ), Werner Enterprises ( WERN ), Old Dominion Freight Line ( ODFL ), XPO ( XPO ), J.B. Hunt Transport ( JBHT ), Marten Transport ( MRTN ), Daseke ( DSKE ), , as well as Proterra ( PTRA ) and TuSimple ( TSP ) from the electric vehicle sector.
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Truckload demand stays weak in sign of freight recession