Supply of Class 8 Trucks Supply of Class 8 Trucks Increasing Faster Than Demand
The latest ACT Research For-Hire Trucking Index denotes that the supply of the class 8 trucks is increasing by a rapid rate and the production is much more than the demand. The supply is continuing to increase faster than the rate at which the buyers are purchasing these vehicles.
Steve Tam, ACT’s vice-president, commercial vehicle sector, said in an interview, “The capacity index [supply] rose faster than the freight index [demand] for the fourth consecutive month and the tenth time in the past twelve months in December.”
He further said, “We have to go back to the second half of 2012 to find a comparable period of imbalance – a period marked by anemic economic growth and strong U.S. Class 8 retail sales. Truckers have caught on to the fact that there is excess freight hauling capacity in the market and have started curtailing their purchases accordingly. Sales are likely to continue on a downward trajectory until the oversupply of trucks is consumed.”
The ACT is the relevant authority which is tasked with the publication of new and used commercial automotives and vehicle industry data and research information, market analysis and the prediction and financial and industry trend forecasting services, for the North American trucking and transportation market, as well as the U.S. tractor trailer market and the China CV market.
But to judge the prosperity of the trucking industry by evaluating the statistical data is not a comprehensive approach. Overall the industry is booming and if observed from a different perspective the decreasing demand for the trucks is not due to the depression in the economic conditions of the transpiration sector. However, while speaking at the American Trucking Associations (ATA) economic briefing, ACT Research president Kenneth Vieth explained that the recent economic data derived from the trucking industry is much better than the post recession era and the advancement is predicted to continue for the next few years.
However, when we look at the data provided by the results of Fleet Executive’s Annual Equipment Buying Trends Survey, most of the fleet companies didn’t purchase any vehicles in the last two years and the buying behavior showed a sharp decline of 13.2%, when the respondents reported that they didn’t have any plans for vehicle replacements. 45.4% of the respondents claimed that they expected to update 10% of their trucks and 27.6% said that they will think about replacing 20% of their vehicles.
Kenny Vieth, ACT’s president and senior analyst, said in a statement, “The capacity index [supply] rose faster than the freight index [demand] for the 8th time in 10 months in September. We have to go back to the second half of 2012 to find a comparable period of imbalance – a period marked by anemic economic growth and strong U.S. Class 8 retail sales. With strong Class 8 sales expected into the end of the year, and no apparent catalyst to trigger stronger economic growth, we would expect capacity additions to remain ahead of freight creation at least into the end of 2015.” – See more at: http://truckernews.com/supply-of-class-trucks-increasing-faster-than-demand-p648-90.htm#sthash.1hy7e0h6.dpuf