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How did publicly traded trucking fleets perform financially as the roller-coaster year of 2020 headed back uphill in the third quarter?
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Despite the record plunge in new-truck orders during the spring COVID-19 pandemic shutdowns, orders of Class 5 through 8 trucks closed out 2020 in near-record territory.
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ACT Research said that while overall trailer orders in the U.S. fell off in November, the market segment remains strong overall.
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Truck tonnage in November was up compared to October but down year over year, according to the American Trucking Associations.
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FTR is reporting that its Trucking Conditions Index for October 2020 literally went off the charts to the highest reading the research firm has ever recorded.
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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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A drop in the American Trucking Associations' truck tonnage numbers in October could be another sign that the economic recovery is slowing, but it also may be a case of seasonal trends thrown off by the pandemic.
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Although the economic recovery from the COVID-19 shutdown is definitely not a “V” shape, it’s growing steadily – but don’t expect to be back where we were until mid-2022, said Jeffrey Rosensweig of Emory University.
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