Following conflicting reports on the economic conditions in the transportation market, experts from FTR Transportation Intelligence met to provide clarity on the current economic situation. Despite talk of a transportation recession, FTR data and analysis show a slow growth environment with a mid-cycle correction for the transportation market.
When looking at transportation from both a shippers and carriers perspective, the consensus is that the markets are functioning logically and normalizing from the hotter market we saw in 2018. From a modal perspective, trucking was so favorable in 2018 that shippers couldn't find enough capacity to meet the demand, while railroads weren't able to add freight into the system or able to convert it into intermodal due to inefficiencies, costs, and reliability. With the demand for trucking to adjust to the capacity increase, it has come down to driver supply and carriers. While carrier failures have been a hot topic, the data shows an increase in new carriers joining the market, following a fairly normal pattern. Avery Vise, VP of Trucking for FTR added, "at this point it doesn't look like it's going to get worse."
As you listen to the conversation in this episode, you will hear from Eric Starks, Chairman and CEO for FTR, Avery Vise, Vice President of Trucking, and Todd Tranausky, Vice President of Rail and Intermodal.
Downloads and past episodes are available at: www.FTRintel.com/podcast.
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