Morgan Stanley: Retailers overbuying in summer affecting TL carriers
Retailers’ actions in the summer are having an impact on truckload carriers this fall, according to Morgan Stanley’s Oct. 20 Truckload Freight Index.
“Several TL carriers have attributed recent lackluster earnings to weaker fundamentals,” the report said. “We’ve been hearing that some of the weakness in the freight market is coming from retailers who overbought in the summer and are waiting for inventories to dwindle before restocking, although the carriers have not confirmed this. If this proves true, the demand may come too late for many modes. That said, if retail sales prove robust in 4Q, parcel shippers could benefit from the lower inventories at many retailers.”