This is a brilliant story that perfectly captures what the MB Fund has been thinking about inflation for the past eighteen months. It’s a classic example of the inventory supercycle in which stimulus-pumped demand and inhibited supply have tricked the supply chain into double-purchasing and over-investment. As demand hiccup comes through thanks to the Fed, this can all unravel at spectacular speed across entire global supply chains.
—
After two years of COVID-induced havoc in global freight markets, volatility has started to abate. FreightWaves’ view of the market has become clearer, and the picture isn’t pretty. We think another sharp, painful downturn in the U.S. truckload market is imminent, and it could be as bad as 2019.
