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A sudden war in crude oil prices between Russia and Saudi Arabia could mean a drop in diesel and gasoline prices at American fuel pumps. But the longer-term implications are more worrying.
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Thus far, the novel Coronavirus is mostly affecting fleet operators operating out of West Coast ports. But the remainder of the industry — and continent — is watching unfolding events carefully.
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Used Class 8 truck sales improved 4% month-over-month in January, but sales were down 1% year-over-year compared to January 2019.
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FTR said its Trucking Conditions Index in December was the highest since January 2019 and the first positive reading since 0.28 in July.
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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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