Wednesday, June 13, 2012

US Road Haulage Operators Class 8 Truck Orders Drop Not Due to Paucity of Freight

Research Firm ACT Report Blames Credit Situation
Shipping News Feature

US - Research firm ACT Research says new Class 8 truck orders are down 23 percent compared to last year with road haulage operators unwilling to invest. New orders for May numbered 18,000, compared to 23,337 last year and the report also has analyses that say the slower buying is probably a result of credit issues instead of freight orders. Kenny Vieth, president of ACT Research points out:

“As has been the case the past two months, the issue appears to centre on credit-buying truckers’ confidence in the economy relative to the risk of taking out a sizeable loan. Highlighting the notion that the recent pullback in orders is a confidence rather than freight related issue, cancellations in recent months have remained at low levels. Beyond confidence, the demand check boxes remain positive, suggesting that the pull-back is temporary.”

That’s good news for the freight industry, but the credit issues could lead to problems and higher freight costs down the line. However, it is unlikely that upkeep costs will increase enough to affect prices unless something changes and the credit crunch in the US home market becomes more permanent.

On a positive note, the report also found that the numbers for heavy-duty trucks were actually up from April’s final numbers. The uptick is a good sign, but Vieth warned that it wasn’t likely to hold out in future months. Data from previous years shows that July and August orders are typically the lowest of the year.

This was an article by Ryan Franklin a guest author and expert on all kinds of transportation, from freight to yacht shipping.