Macro and freight activity has increasingly felt the weight of retreating commodity prices, a slowing global economy, and the Bank of Canada's aggressive rate hike campaign. The Canadian spot market has paralleled slackening conditions in the U.S., with available freight steadily declining and capacity gradually increasing. Relief from the headwinds, none more significant than the retreating housing market, is unlikely to arrive soon as BMO economists don't expect positive GDP growth to re-emerge until the 4th quarter of 2023. That said, low unemployment, sticky wage growth, improving supply chains (most notably in the vital auto sector), healthy consumer and corporate balance sheets, and pent-up demand should blunt some of the initial downside pressures.
Industry Update Fall 2022: Canada Truck Transportation
