MY ETT News » buying

Buyers adapting to used market

Rhonda Flathman — Tue, 23 Aug 2011 17:44:45 +0000

Used truck buying patterns are changing to adapt to what essentially has become a new marketplace. While lower mileage vehicles are typically prized by buyers, the strategy du jour–in light of recent economic struggles especially–has been to hang on to equipment even longer, thereby withholding inventory that in better days would have already found its way to market. Considering this, it comes as no surprise that ACT Research Co. numbers show a 6 percent lag in used truck sales compared to those a year ago. Fleets are becoming more willing to purchase higher mileage vehicles, but, in response are demanding a more thorough job of reconditioning them.

Used Truck Sales Affected By Recent Economic Times
High demand coupled to still-shrinking inventories is forcing many used-truck buyers to alter their purchasing strategies. Yet experts believe the squeeze on used truck supply, which has seen buyers acquiring models with higher mileages than they would generally prefer, should start to shrink as the run up in new-truck purchases this year creates a steady flow of trade-in equipment into the market.

“The demand over the past 12 to 15 months coupled with the tight supply have led to a rebound in [used truck] values from the lows of 2009,” Richard Simons, president of Daimler Trucks Remarketing Corp., a division of Daimler Trucks North America LLC (DTNA), told Fleet Owner.

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Trailer Orders Jump 55% in August

Rhonda Flathman — Tue, 28 Sep 2010 19:15:28 +0000

Trailer orders continued their healthy rebound, according to the latest report from ACT Research Co. In August, commercial net trailer orders rose 55 percent from the same month last year, “one of the worst years in the commercial trailer industry,” the research firm said. Orders improved across the board in eight of nine categories ACT tracks, with the only drop being in dump trailers. August’s net orders of 10,946 were 2% over July’s level and trailer makers boosted their per-day build rate by 6% in August, which caused the backlog of orders to decline for the first time in eight months, ACT said.

Commercial trailer net orders rose 55% in August from a year earlier, ACT Research Co. said.

The moved continued “a healthy rebound from what was one of the worst years in the commercial trailer industry,” ACT said.

Eight of the nine trailer categories tracked by ACT posted year-over-year growth, the exception being dump truck trailers, which slipped 2%.

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Canada still selling less and buying more

Rhonda Flathman — Thu, 16 Sep 2010 20:51:16 +0000

Canada’s exports continued to drop, while imports rose, according to the latest numbers from Statistics Canada. For July, exports declined 0.7 percent, or from $33 billion in June to $32.8 billion in July, marking the fourth decrease in six months. Leading the decrease was industrial machinery such as aircraft, engines and parts. Other export drops included consumer products and forestry products, which fell after 10 straight months of growth. Exports to Canada’s largest trading partner, the United States, fell by 2.2 percent, while imports rose by 2.9 percent. Energy products accounted for over half the growth in overall imports, followed by automotive products and machinery and equipment. For the complete report, visit Stats Canada.

OTTAWA — In July, Canadian exports dropped 0.7 percent while imports grew by 2 percent.

Net result: Canada’s trade deficit with the world widened to $2.7 billion in July from $1.8 billion in June, Stats Canada reports.

Specifically, exports declined from $33 billion in June to $32.8 billion in July. It was the fourth decrease in six months. Aircraft, engines and parts, (-9.6%) and other industrial machinery led the decrease.

Exports of consumer (-7.3%) and forestry products (-5.3% after 10 straight months of growth) also fell.

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Wholesale Inventories Take Biggest Jump in Two Years

Rhonda Flathman — Wed, 15 Sep 2010 17:09:52 +0000

Though they only account for one-fourth of total business stockpiles, wholesale inventories saw a promising increase, the biggest in two years, according to the Commerce Department. The most recent jump of 1.3 percent was more than three times what economists predicted. Wholesale sales rose more than one-half percent, as well, the most since April. Of total business stockpiles, wholesale inventories comprise a small slice, with retailers and factories making up the rest.

Wholesale inventories rose in July by the most in two years, the Commerce Department said Friday.

The 1.3% jump was three times economists’ estimates, Bloomberg reported. It followed a 0.3% increase in June that had originally been reported as a 0.1% gain.

Click here to visit Transport Topics and read the complete story.

Drop in Class 8 net orders chalked up to seasonality

Rhonda Flathman — Fri, 27 Aug 2010 19:50:29 +0000

Like net trailer orders, Class 8 net orders fell 27 percent from June to July this year, but overall sales are trending upward, according to ACT Research’s State of the Industry: Classes 5-8 Vehicles report. Analysts attributed the month-to-month decline in part to seasonality. Medium-duty trucks showed the strongest improvement, up 100 percent from July 2009. As trucking company profitability continues to strengthen, Class 8 sales will
continue to rise.

COLUMBUS, Ind. — A 27% decline in Class 8 truck net orders in July was a reflection of seasonal buying patterns and the momentum of Class 8 demand continues to be positive, according to the latest State of the Industry: Classes 5-8 Vehicles report published by ACT Research.

July net orders were 27% higher than July 2009, the company noted. In July, there were 11,667 net orders for Class 8 commercial vehicles in North America. Net orders of medium-duty trucks rose both month-to-month and year-over-year. Compared to July 2009, medium-duty net orders were up 100%, ACT reports.

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Trailer orders stay strong despite dip

Rhonda Flathman — Fri, 27 Aug 2010 19:31:22 +0000

Though new trailer orders took a dip from June to July this year, industry analysts remain positive about the overall direction of the market. According to data from ACT Research, Co., last month’s numbers showed a 74 percent improvement over the same time last year. And the largest segment of commercial trailers, dry vans, saw something of a comeback with a 134 percent jump from July 2009. As far as the 9 percent decline in new orders from June to July, researchers say bear in mind the continued effects of a very weak 2009. Despite these tentative numbers, ACT Research showed the demand for used trailers, particularly late models, a strong and improving segment of the market. Pricing for used trailers has rebounded, though supply is an issue since customers are holding on to their equipment longer.

Commercial trailer net orders stayed strong in July this year, according to data compiled by ACT Research Co., with orders up 74% over July 2009 – continuing a healthy rebound from what was one of the worst years in the commercial trailer industry, the firm said.

Though ACT noted that July’s 10,688 net orders for trailers represented a 9% decline from June of this year, the company believes nominal seasonality is the main reason for the drop. In fact, according to its information, the most recent six months of commercial trailer net orders are the best six-month span since the period ending February 2008.

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Freight slowing but should stay strong

Rhonda Flathman — Wed, 11 Aug 2010 20:49:10 +0000

If the economy is in fact improving, then the trucking industry seems slow to realize it. Freight volumes are slowing, banks are hesitant to lend and carriers aren’t replacing equipment. Despite the dip in orders and a sluggishly improving economy, analysts say the general upward trend will continue. For now, business seems stuck in a holding pattern of sorts. The manufacturing sector continued to grow in July, for example, though at a slower rate than the previous month.

Motor carriers shouldn’t feel too much of an impact from a dip in freight volumes of late as trucking capacity still remains well below demand – and all indications are that fleets are not planning to expand their fleets anytime soon.

According to Jon Langenfeld, transportation analyst with investment firm Robert W. Baird & Co., the outsized freight demand that occurred in the first half of this year is starting to moderate to what he terms “more sustainable growth trends.”

The Institute for Supply Management noted that its new orders index decreased five percentage points in July to 53.5% from June’s 58.5%.

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ATA sees 25% freight growth in next decade

Rhonda Flathman — Fri, 21 May 2010 18:50:07 +0000

Buoyed by declining unemployment and increased consumer spending, freight and freight revenue should expect brighter days ahead, according to a new forecast released by the American Trucking Associations (ATA). The report, titled “The ATA U.S. Freight Transportation Forecast to 2021,” anticipates a 25 percent growth in total freight tonnage in the next 10 years. Increased tonnage means increased revenue, and the report also projects that that will grow by nearly 70 percent by the year 2021. By that same year, the ATA sees a slight decline in freight moved by rail, but a more than 5 percent growth in air freight.

A new report released by the American Trucking Assns. (ATA) is forecasting bright days in the years ahead for freight and freight revenue. “The ATA U.S. Freight Transportation Forecast to 2021” predicts a 25% growth in total freight tonnage in ten years’ time.

“All modes of freight transportation were impacted by the ‘Great Recession,’ but I’m growing more optimistic about the long-term outlook,” said ATA chief economist Bob Costello. “There are certainly some risks, but I think better days do lie ahead for the freight hauling business.”

The report was conducted by IHS Global Insight and Martin Labbe Associates for ATA.

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ATA Truck Tonnage Index fell 0.5% in February

Rhonda Flathman — Fri, 09 Apr 2010 20:18:16 +0000

February’s seasonally-adjusted for-hire truck tonnage numbers indicated the third consecutive year-over-year gain, and for the first two months of 2010, freight was up 3.5 percent over the same period last year. But American Trucking Associations (ATA) economists aren’t ready to declare a full economic recovery. They agree it will take time for the industry to get to full strength, and some month-to-month volatility in tonnage is expected through the rest of 2010. But the good news is that the trend should indicate moderate growth.

Seasonally-Adjusted For-Hire Tonnage to Moderately Improve in 2010

The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 0.5 percent in February following a revised 1.9 percent increase in January. The latest drop put the SA index at 108.5, down from 109.1 in January. The nonseasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 97.6 in February, down 0.8 percent from the previous month.

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Less Than Lucrative: LTL recovery most challenging

Rhonda Flathman — Tue, 06 Apr 2010 18:58:44 +0000

Though freight has hit bottom for most transportation modes, recovery for the less-than-truckload market is likely still distant. In part, carriers who are still hanging on because banks and lenders don’t want to be burdened with the equipment are practically giving their business away. And in today’s economic climate, it’s hard to turn down a deal despite the risk of dealing with a company on life support. What may require the most acclimation after getting something for nearly nothing for so long, however, is paying more for shipping when the market does improve or is headed in that direction.

TORONTO — During the legwork for the 2009 U.S. Mastio & Co. LTL shipper survey author Kevin Huntsman was talking shop with a medium-sized U.S. carrier who shared a pricing tale that involved losing four accounts to a much larger, national carrier whose recent struggles have been well chronicled.

“The customers,” relays Huntsman, “told the carrier that ‘the price is so low that we don’t think we’ll ever see pricing like this again, and we have to take it.’”

And if, as it’s been speculated, the carrier goes under with the freight left on the shipping dock?

“We’ll deal with it when it happens,” the customers told him. “The price right now is just too cheap to say no to.”

You hear stories like that all the time in the LTL sphere, which has arguably rivaled flatbed as the trucking sector that has taken it the hardest on the chin during this freight downturn.

Click here to visit Today’s Trucking and read the complete story.