Recession in trucking

Class 8 truck orders are down 80% from July last year and 69% June to June.  But let's put things in perspective – most years ~240,000 trucks are built.  This year 350,000 trucks are expected to roll off US production lines.  Key takeaways:
  • Truckers have been growing fleets – not just replacing vehicles
  • Many carriers have over bought (ACT Research says we have 6% too many)
This will pose opportunities:
  • For shippers = lower spot rates
  • For the likes of Uber Freight – as spot rates are lower that contract rates
  • For our company – as transportation managers try to generate more savings through AutoO2 load optimization – MORE PRODUCT – FEWER TRUCKS – MORE BUCKS