Class 8 truck orders are down 80% from July last year and 69% June to June. But let’s put things in perspective – most years ~240,000 trucks are built. This year 350,000 trucks are expected to roll off US production lines. Key takeaways:
- Truckers have been growing fleets – not just replacing vehicles
- Many carriers have overbought (ACT Research says we have 6% too many)
This will pose opportunities:
- For shippers = lower spot rates
- For the likes of Uber Freight – as spot rates are lower than contract rates
- For our company – as transportation managers try to generate more savings through AutoO2 load optimization – MORE PRODUCT – FEWER TRUCKS – MORE BUCKS