STORY CONTINUES BELOW THESE SALTWIRE VIDEOS - The U.S. trucking industry may begin to see an uptick in freight demand in the back half of the year after grappling with another quarter of lower profits due to a slump in package volumes, company executives and analysts said.
Meanwhile, a drop in volume of large containers handled by U.S. ports compared to last year is also set to narrow in the coming months, according to the National Retail Federation, indicating retailers are preparing for increased demand during the year-end holiday period. Old Dominion Freight Line Chief Financial Officer Adam Satterfield also expressed similar views last month on inventory.
This led to retailers moving to stop an inventory pileup, sending a ripple effect on trucks and railroads that move the goods. The second quarter was the most challenging for trucking firms in recent times, analysts and industry executives said, owing to high wage costs and ultra-low spot rates, or the current market price for a one-time freight shipment."We're still in the worsening part of the down cycle.. but by the time we get into next year, we'll be returning to growth," said Tim Denoyer of market research firm ACT Research.