Economic activity drives the freight market, but paying attention only to indicators of the economy’s overall health doesn’t tell the whole story of what may be ahead for trucking.
A government official expert at analyzing labor trends contends that trucking is not experiencing a driver shortage, rather she sees the problem as one of painful turnover in one segment of the industry.
Early reports on Class 8 truck orders for the month of August show a modest increase compared to July, but as manufacturers open up slots for 2020, it seems that fleets are in no hurry to fill them.
FTR’s revised Trucking Conditions Index showed significant improvement for the month of June thanks to strengthening freight demand and lower fuel prices, but other factors are likely to keep things subdued through the rest of the year.
While the overall economy grew at a steady rate in the second quarter, the transportation segment lagged behind as demand for goods and their subsequent transportation of goods was much weaker than in other sectors.
Preliminary Class 8 orders in July were around 10,000, as reported by ACT Research and FTR, the lowest since 2010 without seasonal adjustments.
Recent economic reports from trucking industry analysts show a decline in the freight market in the near term, but it could stabilize in the long term.
Trailer orders continued to slide in May as OEMs catch up on building orders from last year. But with few signs that ordering will pick up again this year and a slowing economy, could it mean lower prices for fleets in the future?
It’s no secret that orders for Class 8 trucks have been in decline this year, but May is projected to hit new lows, according to preliminary reports from FTR and ACT Research.
Decreasing freight rates, sluggish demand and slow truck orders are all signs of a trucking industry that has finally hit the brakes on the 2018 economic boom.