Recession risk is growing

According to Truck News, spot market rates are falling and the truck demand is decreasing as well. With the ongoing war between Russia and Ukraine we will continue to be in a financial bind as a nation due to the aid we are providing. COVID regulations in China are another factor contributing to these supply chain delays. China has been on and off with their covid mandated lockdowns, creating inconsistency within the national supply chain. “The battle against inflation is global. U.S. inflation continues to accelerate, prompting the [U.S. Federal Reserve] to lift the Feds Funds rate 75 basis points this week, the largest increase since 1994, and markets and economists are increasingly predicting a U.S. recession in 2023”. Backlogs are continuing to grow along with increasing order volumes. Experts are reporting expectations of a U.S. economic recession, and a mild recession is more likely than not. Commercial vehicles will continue to face obstacles and the economy will feel the ripple effect of the issues the trucking industry continues to face.