Trucking conditions are in wonderful shape. Fleets can’t keep up with demand and freight rates are high. Sales of trucks and trailers are expected to
What’s
going on?
* Total
Manufacturing (from the Industrial Production data) is strong. Meaning:
The Freight
Is Great!
* Food
shipments are robust. People have more disposable income and are spending lots
of it at restaurants. Result:
The Freight
Is Great!
* Building
materials are also healthy, but expected to moderate some in the second half of
the year. There is a demand for new houses and office buildings. Causing:
The Freight
Is Great!
* Chemical
products started of the year slow, but are expected to recover in Q2 and
beyond. Manufacturing should boost this sector. Leading to:
The Freight
Is Great!
*
Fabricated Metals are smoking hot. Manufacturing needs these components in high
volumes. Making:
The Freight
Is Great!
* Wood
products are also up due to the construction sector. Subsequently:
The Freight
Is Great!
* Durable
Goods manufacturing is way up. Non-Durables are growing. Result:
The Freight
Is Great!
* The Oil
and Gas sector is exploding as crude oil prices rise. Causing:
The Freight
Is Great!
* FTR’s
Trucking Condition Index is at extremely high levels and is only expected to
moderate slightly this year. Why?
The Freight
Is Great!
* FTR’s
Trucking Market Demand Index was at a record in April. Indicating:
The Freight
Is Great!
*
Unemployment just sank to 3.8%. People have jobs. People have money. People are
buying lots of products that are moved by trucks. Result:
The Freight
Is Great!
* Some
economists have forecasted GDP growth of 4% for Q2. Which leads to:
The Freight
Is Great!
* FTR’s Active
Truck Utilization measurement is near 100% and expected to stay that way
throughout 2018. This means nearly all active Class 8 trucks are being
employed, because, of course –
The Freight
Is Great!
* An
industry veteran recently said he has never seen a market this strong in his 28
years of trucking. This is because:
The Freight
Is Great!
* When
traveling down the highway, you see many tractor-trailers hauling many types of
goods. All because:
The Freight
Is Great!
* There is
a severe shortage of truck drivers to haul all the goods. Due to:
The Freight
Is Great!
Demand for
new Class 8 trucks and commercial trailers are at record levels. So much so,
that component suppliers cannot keep up with orders. All because:
The Freight
Is Great!
A German
economist analyzing this situation might say:
Die Fracht
ist großartig!
Which
translated means: The Freight Is Great!
So, to
summarize the current state of the trucking industry in four words:
The Freight
Is Great!
This post first appeared on the FTR website with minor changes here.. FTR is the leader in analyzing and forecasting the commercial transportation industry. For more information on FTR reports and services, please click here.)
