trucking

Manufacturing surge to four-year high signals robust freight demand ahead

U.S. manufacturing reached its strongest level since May 2022, expanding for a fifth consecutive month and signaling sustained demand for trucking services. The Backlog of Orders index climbed 0.2%, while supplier delivery times hit their highest point in four years at a level last seen in May 2022, indicating stretched supply chains across industries. Customer inventories remain depressed at 42.7%, historically prompting continued production and restocking shipments that drive freight volumes. However, carriers face mounting cost pressures. Trucking services ranked among commodities experiencing price increases, while diesel fuel climbed for a third consecutive month amid Middle East geopolitical tensions. Fifty-seven percent of manufacturers flagged pricing volatility as an active concern. The outlook: industrial freight demand is strongest in four years, but rising fuel and input costs are pressuring margins even as order books strengthen.