Weaker spot rates are mainly to blame for a dip in the latest FTR Trucking Conditions Index, which tracks the industry via freight volumes, freight rates, fleet capacity, fuel price, and financing
Preliminary reports indicate trailer orders for December were down from the previous month and significantly down from the same time last year, according to ACT Research and FTR estimates.
While it’s been a challenging year for the trucking industry in some ways, comparisons to the runaway market of 2017-2018 may make it seem worse than it is. In their monthly State of Freight webinar Dec. 12, the transportation intelligence analysts at FTR discussed the top trends affecting freight volumes and rates.
From what happened this year to what is projected to happen next year sales-wise, the heavy-duty truck market will be set up for a “modest rebound in 2021 followed by growth into 2023,” according to Act Research.
FTR’s Trucking Conditions Index slipped into negative territory again for September when it hit its lowest point since May, reflecting a relatively weak environment for carriers.
As equipment ordering season for 2020 kicks off, October trailer orders hit the highest level since November 2018.
Class 8 truck orders hit a high point for 2019 in October; however, in what is traditionally a great month for truck orders, that performance marked the weakest level since 2016, according to preliminary reports.
Trailer orders hit the highest level of 2019 in September, rebounding a bit from a slow year for equipment sales, and it could indicate that fleets are more optimistic about 2020.
Freight transportation analysis firm FTR is reporting that the truck freight environment was mediocre in August and was likely to stay that way through 2020.
You can no longer expect to run a motor carrier of any size without at least a glancing appreciation for the impact logistics— in one way or another-- has on every link in the supply chain.