Goldman Sachs analyst Chris Hussey says that not only will trucking rates remain low for all of 2008, but possibly into a good part of 2009, as trucking demand looks to remain low for the extended term.
High fuel prices and overcapacity remain big problems for trucking, Hussey says, adding that he thinks the U.S. economy is headed for a mild recession this year and that trucking freight volumes tend to stabilize during a recession.
Also, in a recent trucking industry report, Bear Stearns analysts say, "Almost all of our contacts are seeing lower LTL pricing as a result of the difficult environment, and two of the carriers we spoke with are even seeing an increase in price competition in recent months."
Source: Purchasing, http://www.purchasing.com