Freight Demand Signal: US Business Activity Fastest Since 2021

What happened

A strong freight demand signal came out this week. US business activity grew in September at its fastest pace since 2021, Transport Topics reported on Sept. 23.

The numbers come from S&P Global's PMI survey. PMI stands for purchasing managers' index. It asks companies if business is getting better or worse. Any number above 50 means growth. The higher the number, the faster the growth.

Here is what the September survey showed:

• The overall (composite) PMI hit 58.4, the highest since July 2021.
• Services, like stores and restaurants, came in at 58.7, the highest since 2021.
• Manufacturing came in at 57.0, its best reading since 2022.
• New orders grew at the fastest rate since April 2022.
• Hiring grew at the fastest rate in more than four years.

The survey also found problems. Companies said costs rose at the fastest pace since 2022, and fuel and transport costs were a main reason. Supplier deliveries slowed the most since mid-2022. Many businesses also said it is harder to find good workers.

What it means for owner-operators

When factories and stores get more orders, they need more trucks to move the goods. New orders today often turn into loads in the coming weeks. That is good news if you have been fighting for freight.

Slower supplier deliveries also point to tight capacity. When goods move slowly, shippers look for trucks they can count on. Reliable small carriers can win steady customers in times like this.

There is a catch. Fuel is still expensive, so watch your cost per mile on every load. And a busy market can change, so don't grow faster than your cash allows.

What to do next

• Ask your regular customers if they expect more freight in the next few months.
• If you plan to add a truck, a trailer or a driver, tell your insurance agent before it starts working, not after.
• New shippers and brokers will ask for a certificate of insurance (COI). Have your agent ready to send it the same day.
• Check that your cargo limit matches the value of the freight you are taking on. Our guide to trucking insurance coverage explains each coverage.

Growing your business? Let's make sure your coverage grows with it. Call TCZ Insurance Agency at 956-526-6727.