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.
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.
“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.
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.
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.
FTR’s latest forecast calls for stronger freight demand and positive trucking conditions through 2021.
Preliminary North American Class 8 net orders were 44,000 units, up 4% compared with January orders, FTR reported.
Preliminary reports indicate trailer orders in January fell about 34 percent compared to December 2020 orders, according to ACT Research and FTR.
The fuel cost component of FTR's Trucking Conditions Index recorded the largest negative change in more than three years.
The number of new for-hire trucking companies getting authority soared in 2020, even as the pandemic hit some existing carriers hard.