world-economy

Tight Capacity Sustains Elevated Freight Rates Despite Modest July Pullback

Flatbed spot linehaul rates averaged $2.83 per mile this week, down 1.5% from the prior week while maintaining nearly 40% year-over-year gains. The July Logistics Managers' Index declined to 68.9 from June's 71.1, signaling continued operational strain across supply chains despite the modest pullback. Capacity constraints remain the primary driver of pricing power in the trucking sector. A federal permit approval for a new Gulf Coast marine container terminal capable of handling 2 million containers annually represents significant infrastructure expansion. The new port facility should provide additional logistics throughput as shippers navigate ongoing transportation challenges. Carriers benefit from limited supply relative to freight demand, though week-to-week rate moderation suggests potential volatility ahead.