The CEOs of companies in the US trucking industry expect raised prices in the second half of 2022, despite lowered but stable demand, as a result of customer’s different factors such as the adaptation to the new circumstances and disruptions. It is also anticipated that the worst periods in the sector and the supply chains are left behind, and the industry will continue improving in the near future. The prices for customers might not reach the levels of those before the pandemic, as trucking must continue being a profitable business, despite the current situation with fuel prices. Disruptions such as the Covid lockdowns in China may also add uncertainties of a different type in the trucking sector.
According to the Saia survey targeting customers, companies in this sector are according to the current situation, still figuring out the future steps and adapting to the “new normal” in this industry. As Saia Inc. President and CEO Fritz Holzgrefe acknowledged the CNBC, “They were talking a lot about continuing to rebuild inventory positions, straightening out their supply chains through the balance of the year, even into the first part of next year.”.
The stocks of companies in this sector are performing very well, and while the S&P 500 is raised more than 7% in July 2022, stocks of trucking companies increased by over 10-20%. The spot trucking agreements for shipping, on the other hand, are lowered by 11% with prices that are determined by the supply and demand. As the trucking sector mainly works with contracts, spot rates trucking has a past price maximum in the largest E-commerce demand.
In a conclusion, this very important industry for the economy is focusing on effectively managing the market disruptions are predicting potential future problems that might affect the trucking businesses and/or might additionally influence the supply chains worldwide.
