With a steadily improving economy and sectors such as manufacturing and construction going strong, many trucking companies are finding they have more freight than they have trucks to haul – but nowhere is that more true than in the flatbed sector.
FTR’s Trucking Conditions Index for March fell more than five points from the previous month’s record high. But it remains indicative of a favorable environment for carriers.
Although the April 1 start to “hard enforcement” of the electronic logging device mandate does not seem to have had a huge effect on trucking capacity (except perhaps in flatbeds), there are a number of other factors that are working to keep capacity tight and rates high, likely at least until late this year, according to FTR.
Trailer orders topped 30,000 in March, besting an earlier estimate of 29,500 orders, showing that fleets are still investing in new equipment, according to ACT Research.
FTR’s Trucking Conditions Index for February hit its highest reading ever, reflecting an unmatched positive environment for carriers.
Early reports from FTR on trailer order activity for March show that while orders declined by 16% from the month before, they remain historically strong.
The number of loads on the spot truckload freight market jumped 3.6% during the week ending March 24 while truck capacity increased 1.3%, according to DAT Solutions.
When you look back just four years ago to 2014, a lot of heavy-trucks were sold. Freight demand had suddenly increased, and everyone was trying to move more cargo. But when 2015 rolled around, things weren’t as rosy.
There is increasing evidence that the supply of trucks available to move freight is outpacing demand, based on a flurry of recently released reports – but it’s also helping push freight rates higher. What's behind the capacity crunch?
Trailer orders in the U.S. are expected to hit an all-time high of 47,000 units for December 2017, pushed by tightening capacity that FTR attributes to the ELD mandate.