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Barring the unexpected, trucking can generally expect flat to moderate growth in demand and rates in 2020, with most of the growth in the second half of the year.
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Bob Dieli, an economist with aftermarket research firm MacKay and Company, identifies these as economic boom times. But good things don’t last forever.
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During a panel discussion during Heavy Duty Aftermarket Dialogue, trucking experts recognized that aftermarket businesses must continue to adapt to changing economic conditions and market forces alike.
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The latest reports from ACT Research show improvement in for-hire freight volumes, but also a slide in the Freight Rate Index in December and a slight improvement in the economic outlook for 2020.
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After closing without notice in early December, Akron, Ohio-based GDS Express has filed for bankruptcy. The company filed for Chapter 11 liquidation on Dec. 27, 2019, citing the shutdown of a revolving credit account.
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Citing a brutal October and November, ACT Research warns that 2020 will be much tougher for both medium- and heavy-duty truck sales.
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The American Trucking Associations’ numbers tracking tonnage hauled by for-hire trucking companies fell again in November, leading ATA Chief Economist Bob Costello to say, “It’s tough to sugar-coat November’s reading.”
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The new year will be a tough one for the trucking industry, according to Steve Tam, vice president of research for ACT Research.
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ACT Research said North American used truck sales volumes fell 35% in November.
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Although a recession is unlikely next year, ACT Research said uncertainty regarding the economy in the latter half of 2019 will detrimentally affect medium- and heavy-duty truck markets next year.
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