A sluggish housing market, higher fuel prices and growing federal debt could lead to another freight recession in 2014, according to FTR Associates, a research firm that studies the trucking industry. But what is helping the industry now is a strengthening manufacturing climate and a solid export market. As 2014 nears, however, regulatory changes, such as hours-of-service revisions and potentially higher interest rates, thanks to that Continue Reading

The trucking industry is getting strong enough to weather the effects of higher fuel prices, but not all small or medium-sized companies may make it. Research firm FTR Associates surmises that fuel prices have reached their peak, yet even despite the increases, it’s not slowing down fleets that are looking to replace older equipment. Orders for Class 8 vehicles have jumped by triple-digit percentage points–158 percent, according to ACT Research, which predicts those numbers could be even higher if fuel prices were lower. Not everyone will be able to survive the latest jump in fuel, but the Continue Reading

Increases in trucking expenses across the board, including higher equipment costs, driver wages and fuel prices, could be offset in the coming months, according to FTR Associates. The research firm’s latest FTR Trucking Conditions Index shows continued improvement in the industry. The index rose to a reading of 13.3 in March, up from a February reading of 9.92. The index is a measure of several metrics that affect the overall health of the Continue Reading

Preliminary data released by FTR Associates for net Class 8 truck orders for April show another strong month for the industry. Last month’s numbers rose 32 percent over March, which posted a 20 percent increase over February’s numbers. The annualized rate for the past three months is at 362,700 units, and includes the United States, Canada, Mexico and exports. The concern being expressed now is whether manufacturers and suppliers are well-stocked enough to meet this growing demand. This is affecting how FTR Associates may develop forecast numbers, as the research firm has Continue Reading

According to its latest shipping report, FTR Associates analysts are predicting shipping costs to rise rapidly due to increases in trasport costs. The March issue of FTR Associates’ Shippers Update showed that the Shippers Condition Index (SCI) remained in below-zero territory with a value of -5.2, and it is expected to fall further when freight typically surges in the spring to tighten capacity. A reading above zero suggests a favorable Continue Reading

Despite showing the most unfavorable news for shippers in the current recovery, the latest Shippers Condition Index (SCI) numbers from research firm FTR Associates may be the calm before the storm. Brutal winter storms combined with already slack seasonal activity are expected to give way to brighter numbers when the weather improves and freight gets a boost in March. However, there are factors at work that could lead to a capacity shortage on drivers, such as the Federal Motor Carrier Safety Administration’s new Compliance safety Accountability (CSA) program and Continue Reading

Prelimary data released by FTR Associates yesterday shows Class 8 truck orders continue to gain strength. January numbers show a 1 percent increase over December 2010′s strong activity. Compared to one year ago, orders for January this year show a 324 percent increase over January 2010. Just the prior three months show net order activity at 319,500 units. These figures includes the United States, Canada, Mexico and Continue Reading

Though the recession was technically declared over in June 2009, most companies or fleets wouldn’t know it. While recovery hasn’t been as brisk, economic analysts are predicting stronger, steady growth in 2011, but it will bring with it a new set of challenges. Those challenges, like the effects of CSA 2010, a potential driver shortage, continued excess capacity and proposed changes to hours-of-service rules, will take tolls on the industry. The FMCSA’s crackdown on unsafe drivers using the CSA 2010 measurement tool could take some off the roads, meaning more equipment left Continue Reading

Replacing aging trucks in fleets is part of what continued to drive strong Class 8 net orders into December, according to FTR Associates’ preliminary data for the month. Though the total net truck orders for all major North American OEMs was a 3 percent drop-off from November, the 25,247 units ordered were higher than expected and gave analysts hope the trend will continue. Net order activity for the final quarter of 2010 annualized to 280,324 units, which included the United States, Canada, Mexico and exports. As the economy improves, however, FTR Associates cautioned that the Continue Reading

The slow-to-recover economy can be explained as the tale of two phases, GDP growth and truck freight growth, according to analysts with FTR Associates. The GDP rose rapidly, then has slowed because there is less consumer consumption compared to earlier recessions. Senior analyst Neil Perry said tight credit, a slow-to-recover housing market (which accounts for 15 percent of the economy) and unemployment are hampering economic recovery. Growth is still occurring, particularly in the rise of durable goods spending and thanks to global economies like China and Continue Reading