Freight volumes continue to bear the brunt of retreating commodity prices that dampen production, a consumer shift toward services, and tighter financial conditions manifested in slowing manufacturing, construction, and trade activity. While the spot freight market saw a seasonal upturn at the tail end of 2022, the longer-term trend reflects slackening conditions. On the bright side, decelerating inflation, a surprisingly robust labor market, improving supply chains, and a pause in rate hikes by the Bank of Canada should mitigate some downside pressure. Indeed, the tailwinds entering 2023 have been strong enough for BMO economists to nudge their GDP growth outlook higher for the current 1st quarter and delay the onset of a base-case shallow and brief macro contraction until mid-year.
Industry Update Winter 2023: Canada Truck Transportation
