While flagging consumer confidence, raging inflation, and a potentially heavy-handed Fed reaction run the risk of capping demand, freight and capacity tailwinds are poised to maintain the upper hand in the short run. Despite green shoots of modest improvements in the flow of goods and driver availability, to a large degree, the conditions that propelled the industry to new records have carried into 2022. With a rapidly fading pandemic, expectations for a gradual shift in demand from goods to services remain intact. However, near-record unfilled backlog and new orders for durable goods during January confirm that the freight cycle remains intact while near-peak freight rates reflect persistent capacity imbalances. As such, the initial read on 2022 suggests a solid economic outlook for the industry, albeit with the likelihood of the formula shifting from a "shortage of everything" to "more of everything," including transportation capacity and freight.
Industry Update: Truck Transportation Winter 2022
