Holiday freight outlook dimming

Freight demand may be softening heading into the holiday season, which could slow down the transportation sector’s recovery. “The August-September timeframe is traditionally when retailers and other sectors gear up for the holiday," Jeff Chung, head of the logistics practice at USBX Advisory Services said. “However, there is still capacity out there, so the demand for freight transportation has not been as strong as originally thought.” He pointed to the 9.5% drop in overall truck tonnage this August, after a 5% increase in July, as reported by the American Trucking Assns. as a major indication of softening demand. However, Chung did note that it is still early in the holiday season, so there remains a possibility that there could be a freight rebound. “Retailers may be reluctant right now to push holiday freight plans – they may be reacting because they are still coming out of a recession,” he said. “So we could see a freight push in the October timeframe."