Freight Recession Nearing an End? Truck Capacity Signals Tighten

Core Insights - The Dow transports are showing signs of a potential end to the freight recession, with a favorable demand environment for carriers indicated by the sonar truckload rejection index reaching a year high, the highest since May 2022 [1] Industry Developments - The freight recession is considered by many to be the longest on record, with recent indicators suggesting a tightening of capacity [2] - The Department of Transportation (DOT) has implemented a crackdown on trucking schools and non-US truckers, which could lead to increased rates. Recently, the DOT removed 9,500 truckers from the road due to English language enforcement, representing about 1% of US truckers [3] - Additionally, the DOT has taken 3,000 truck driving schools off its registry, impacting the supply of new truck drivers [3] Company Focus - Companies to watch in the truck brokerage and trucking sectors include CH Robinson and Expediters, as well as major container and full truckload carriers like JB Hunt and Night Swift. While there has been no immediate movement in their stocks, they are under observation for potential changes throughout the day [4]