The Trucking Boom Ends
This was a very interesting article and a good read for any company driver, owner operator, or fleet owner. My take on it is in about 3-5 years there's going to be a glut of used trucks on the market. Major carriers put in their new truck orders and will begin receiving their trucks, run them to about 500,000 miles, then sell them. Anyone interested in getting a used truck in a few years should find a buyer's market.
The cyclical transportation industry
Discussion in 'Experienced Truckers' Advice' started by Lepton1, Dec 15, 2018.
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stwik, Accidental Trucker, JonJon78 and 2 others Thank this.
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Lepton1 Thanks this.
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Interesting....
But if you figure MOST trucking companies switched to ELD's in September and October of last year, the lack of a drop in winter 2017 and the giant boom in 2018 correlates PERFECTLY with the reduction in efficiency caused by ELD's. Now that capacity has been bumped, we're back on track..... downwards into the bust.Lepton1 Thanks this. -
I think great caution is going to be needed in purchasing a used truck in the post free for all Era for awhile.
There's going to be a lot of trucks that got abused pretty good on the market. -
Just a couple comments ...
"Red-hot demand for transportation services this year and late last year, especially by truck, caused shortages, spiking freight rates, shipping delays, and more gray hair among shippers, while truckers were scrambling to order new trucks to meet the demand, and truck makers, swamped with orders saw their backlog balloon to 11 months, and records were broken on a monthly basis. But suddenly the hot air is hissing out of the market."
I am sorry guys, this is the most uninformed - IGNORANT - statement I have ever read about this industry.
There was no shortages, dwell time for products didn't increase beyond five percent above the norm and there were no spiking in freight rates, there were no shipping delays and I don't know anyone in shipping having more gray hair.
Truck orders were up for a lot of reasons, one is the fleets lost a lot of their tax advantages at the same time - that is for owned assets. While leasing companies shifted to the newer trucks while letting loose on the older ones which were taken up by uninformed "must cash in" people who never owned a truck.
"As a result, the DAT Flatbed Monthly Barometer, which tracks demand-capacity imbalances, spiked to historic highs. "
this exclude a lot of freight that they have no access to the numbers, making it all suspect. People in my position don't count on DAT or Boroughs for any forecasting because it is skewed.
Boroughs/dat were the ones who said we needed more capacity back in june and a lot of fleets pushed hard to expand when there was no reason for it, capacity is still excessive.StrokerTSi, stwik and HillbillyDeluxeTruck Thank this. -
Pelosi and Schumer are two of the greatest business minds ever, and vieing for leadership of the clan.
I think everyone's concerns are unwarranted.spindrift Thanks this. -
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I think there’s going to be a glut of Trucks sooner than 3 yrs. Ofcourse only my opinion. But I think repos will Be way up in 9 mo. Fleets will take accelerated depreciation and purchase new at better prices. Current Shortage or overpricing soon to be history.Lots of good deals for new and used compared to current market. It’s played out.
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