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Monday, May 27, 2024

Supply Outstrips Demand

For-Hire Trucking Index indicates that the supply of Class 8 trucks has continued to rise faster than demand according to the most recent ACT Research analysis.

“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,” said Steve Tam, ACT’s vice-president, commercial vehicle sector. “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.”

ACT publishes new and used commercial vehicle industry data, market analysis and forecasting services for the North American Market, as well as U.S. tractor-trailer market and the China CV market.