According to ACT Research’s (ACT) latest State of the Industry: Classes 5-8 Report, Class 8 market-leading indicators continue to erode, in concert with deteriorating freight volumes and rates, even as mid and downstream data points remain robust.
With the much anticipated hours-of-service proposed rule changes announced, ACT Research team breaks down the 5 take-aways as well how this will impact carriers.
According to ACT Research’s (ACT) latest release of the North American Commercial Vehicle OUTLOOK, the key risk to all commercial vehicle market forecasts remains the on-again trade war with China.
ACT Research released the August installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report covering the truckload, intermodal, LTL and last mile sectors.
Preliminary North America Class 8 net order data show the industry booked 10,200 units in July, down 21% from June and the lowest monthly order tally since February 2010. Note that these numbers are preliminary. Complete industry data for July, including final order numbers, will be published by ACT Research in mid-August.
In the release of its Commercial Vehicle Dealer Digest, ACT Research noted that the heavy truck and trailer industries are heading for a market correction in 2020, even as the US economic picture remains largely unchanged, aside from concerns about trade and tariffs. The key driver of the near to mid-term outlook is the US consumer, who remains well positioned to keep the economy out of the ditch, even as key freight-generating sectors of the economy take a pause.
According to ACT Research’s recently released Transportation Digest, the Class 8 market is on the cusp of a significant correction. At the same time, the medium duty market continued to confound in May, with forward-looking indicators deteriorating and concurrent data suggesting moderate growth.
According to ACT Research’s (ACT) latest release of the North American Commercial Vehicle OUTLOOK, current Class 8 build rates may suggest upside to the 2019 forecast, but large new inventories and deteriorating freight and rate conditions suggest erring on the side of caution remains the right call.
In the release of its Commercial Vehicle Dealer Digest, ACT Research noted that the economic picture remains largely unchanged, with growth moderating in 2019 from strong 2018 growth. The economy was already moderating as tailwinds from the end-of-2017 tax cuts diminished, but other caution flags are waving including current trade uncertainties, slowing industrial and auto sectors, tariff-driven inventory building, and an unfolding global economic slowdown. The report provides monthly analysis on transportation trends, equipment markets, and the economy.
According to ACT Research’s recently released Transportation Digest, Class 8 retail sales and build are starting the summer at near-record high levels, but evidence supporting a change in direction continues to accumulate. At the same time, the medium duty market was a study of contrasts in April, even as new trailer orders fell to a nearly two-year low.