While preliminary data shows that used Class 8 volumes dropped 10% month-over-month in October, they are still 10% up compared to the first 10 months of 2019, according to ACT Research.
Month-over-month comparisons for October 2020, which showed that average prices increased 4%, reported that average miles rose 1% and average age gained 2%, compared to September. But, when loking at year-to-date data, the trio were all lower, down 11%, 3%, and 7%, respectively, compared to January through October of 2019.
“How the year ultimately plays out will depend heavily on the demand for equipment, particularly in the spot freight markets, where rates have yet to show any signs of abating from recent record highs,” said Steve Tam, vice president of ACT Research. “That said, one of the most frequent questions we are being asked today is why truckers are buying trucks when there are still tens of thousands of unemployed truck drivers, whose rigs are sitting idle.”
Tam added that each buyer likely has their own reasons for purchasing and is not worried about the “big picture of balancing work and capacity.”
“Buyers are probably unaware that they are individually contributing to a faster imbalance of too many trucks and not enough freight, which will hasten the next peak and send the industry down the backslope of the next cycle,” he concluded.