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Although most market factors were not quite as strong in April as they were in March, a reversal of March’s higher diesel prices improved overall trucking conditions.
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What does new COVID-19 masking guidance for fully vaccinated Americans mean for the economy and truck freight, as spending on services that involve being around other people continues to improve?
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While some have predicted a cliff-event drop in spot rates like in 2018, there is evidence that we may instead see more of a contract rate extended plateau, similar to what we saw in 2011-2012, Jeff Kauffman suggests.
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The inventories-to-sales ratio traditionally has been a key indicator for assessing near-term transportation demand. Right now they're very lean, which usually is good news for trucking – but there's a catch.
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Net trailer orders for March rose between 6.4 and 12% over February numbers, to between 27,400 and 29,500 units, FTR and ACT Research reported.
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“You could hardly devise better market conditions for trucking companies as demand is robust in both the consumer and industrial sectors," said Avery Vise, FTR’s VP of trucking.
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While significantly more trucks are needed to handle freight growth, truck production continues to be limited by shortages of semiconductors and various other components, FTR reports.
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While preliminary reports indicate trailer orders in February fell 23% since January to a total of 23,100 units, order activity remained consistent with seasonal trends, according to FTR.
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FTR’s latest forecast calls for stronger freight demand and positive trucking conditions through 2021.
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Preliminary North American Class 8 net orders were 44,000 units, up 4% compared with January orders, FTR reported.
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