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The huge increases in freight volume since the economic contraction are slowing, but the trucking industry still looks to see a strong 2021 in terms of both demand and rates.
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Both ACT Research and FTR report robust Class 5-8 truck orders in November.
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When we drilled into third-quarter GDP to look at the segments of the economy linked to freight demand, the results far exceeded our forecast.
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According to separate ACT Research and FTR reporting, October’s preliminary North American Class 8 orders jumped to 38,900 units and 40,100 units, respectively.
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According to preliminary reports from FTR, September’s U.S. net trailer orders hit a third-highest-month-ever record at 52,000 units, 23,500 units above August and 33,400 more than September 2019.
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According to FTR’s Trucking Conditions Index for August, carriers saw a positive rate environment with reading of 8.31.
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Class 8 orders surged in September to the highest since October 2018, as a stronger than expected economic and freight recovery is giving fleets more confidence and spurring equipment orders.
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According to FTR, preliminary U.S. trailer orders for August increased 49% since July to 28,700 units, the biggest jump since October 2019.
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Pent-up consumer demand from COVID-19 shutdowns continues to buoy spot freight rates, but a still-weak manufacturing sector has experts at FTR cautioning that things could turn downward again.
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Although FTR’s Trucking Conditions Index for July was down approximately 25% from June’s 11.35 reading, trucking conditions continue to remain favorable for carriers as the recovery continues across the country.
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