Waiting on New Trucks thread.

This alignment shop didn't check out your suspension for worn parts?

 

Not a whole lot of skilled mechanics left these days.

 

He’s had issues with his truck from day one. Chad is one of the best alignment guys in the business and I’m sure he did everything he could given the circumstances.

 

Here's this week's update.

July 7, 2023
389 Peterbilt - 144.........9 389X's
579 Peterbilt - 216
T680 KW - 443
W9 KW - 90
Cascadia - 49
Volvo Family - 100
Mack - 44
International - 82

A nice little increase of 122 trucks for sale this week! I bet there are some nervous higher-ups at MHC. They have so much new inventory that I don't know how you move all of them without some significant price cuts and even then I don't know if that will do it. I'd hate to see how much interest they are paying for all those new units sitting at the dealerships nationwide.

 

What’s the % increase…? I suck at math……

 

122/1200ish. About 10%.

 

Every dealer I’ve been by has been packed completely full. I feel like they’re getting too far into interest debt to simply make deals and cut losses. If this does go on another year, as some suggest, it’s going to be nasty.

Interestingly, my employer still has new trucks steadily rolling in and being parked. Another driver and I wonder how it’s possible to have so many new trucks, with most of those being parked, and many drivers not working. Our guesstimates are less than half our tractors are working. We have another, much larger, fleet up the street that appears the same. They have a massive campus, on top of that. I told him, when our fuel cards stop working, it’ll be time to be worried. Until then, just worry about keeping our wheels rolling.

 

I'm near Hurricane's yard in Oklahoma and they have at least 75 trailers on their yard and I'm sure 90% are empty. For all the trailers they took delivery of in the past 18 months their value have had to decrease by at least 30% so they are sitting on some heavy losses.

If we do quick math, assume they took delivery of 100 trailers in the past 18 months at $100K each (could be higher but I assume they got a good discount by buying a large qty) and now those trailers are worth $70K, so the total market value of those trailers is $7M. With depreciation Hurricane is probably showing on their books each trailer worth $85K ($8.5M in total) so they are sitting on at least $1.5M of losses for trailers they purchased in past 18 months.

And I couldn't even imagine the losses they are sitting on for those 389s. With the way they spec them there's a very limited market of 389 buyers who wants one with a 450 cummins and one fake dummy fuel tank.

And I'm sure it isn't Hurricane sitting on these losses as I assume they set-up a leasing corporation but somewhere along their corporate organization chart they have some heavy losses that eventually comes back to the top of the house.

This isn't just a Hurricane issue it's an industry issue. I just went through this pain with my new trailer but I just run 2 trucks, I couldn't imagine the write-downs some of the medium and large fleets are taking.

 

And, lies last only so long. As incoming drivers figure it out, the glass house should see even more cracks forming.

I don’t believe any of my past employers has pages like this about them.