Trucking news and briefs for Wednesday, Dec. 1, 2021: Driver availability improving, ACT reportsThe latest release of ACT’s For-Hire Trucking Index, with October data, showed a decrease in volumes, pricing and productivity, with capacity up slightly and with a lower but still-healthy supply-demand balance. Despite the decrease and uncertainty around the pandemic, ACT Research Vice President and Senior Analyst Tim Denoyer said the outlook for freight volume remains positive “While the pandemic continues to cast uncertainty, the freight volume outlook remains positive,” he said. “In spite of the supply-chain constraints, retailers have managed to stock up ahead of the holidays, the consumer balance sheet is strong and massive restocking demand remains ahead.” Denoyer noted that driver availability improved considerably in October. “The most critical survey takeaways this month revolve around the driver market, with the Driver Availability Index improving considerably in October, as it became clear that most fleets will be exempt from proposed federal vaccine rules,” he added. “The large fleets who train the vast majority of the industry’s drivers would be impacted by the mandate, though it appears only driver schools and team drivers will fall outside of the exemptions. We see ongoing supply-chain turgidity limiting capacity growth, but the pace of hiring is gradually improving, which will be key to the rate trajectory.” Regarding the supply-demand balance, Denoyer noted, “We continue to see a slower-than-normal rebalancing in US trucking markets, featuring record rate increases. Equipment capacity is tight as Class 8 tractor and trailer sales are constrained by parts shortages, leaving immense unmet demand. With some structural driver issues likely to outlast the pandemic and a generally positive freight outlook, we do not expect the market to loosen quickly.” Peterbilt deploying augmented reality tools for service techsPeterbilt Motors Company will have deployed 200 of its patented ARTech augmented reality tools to dealer locations by March 31, 2022, the company announced Tuesday. A proprietary software designed to innovate dealer service and improve customer uptime, ARTech utilizes three-dimensional and augmented reality views of chassis-specific Peterbilt trucks, along with existing service systems like Paccar Solutions Service Management to help dealer service technicians quickly visualize major truck systems and instantly access related technical documentation and diagrams via an Apple iPad. “We analyzed technicians’ pain points and focused on key technologies required to put all of the correct and pertinent data from multiple databases in one single location at their fingertips,” said Peyton Harrell, Director of Dealer Development for Peterbilt. “The result is our ARTech tool, which transforms 2D technical information into a 3D image by placing full-scale objects on top of the real environment. This technology provides technicians a type of X-ray vision to help improve diagnostic and repair times. Dealerships who are using ARTech in their service bays have reported a 15-20% improvement in service repair times.” Augmented reality, with its related software, hardware and architecture, is well-positioned to fill the void between the technical data from engineers and the service technicians that need the data to troubleshoot and perform repairs. It also allows the technician to explore and understand the objects in the most efficient way for them. Peterbilt’s rollout of ARTech builds on the expanding comprehensive suite of uptime services offered on its vehicles and supported through the fastest-growing dealer network in North America. Aon, CarrierHQ partner for Last Mile Delivery insurance programAon plc, which providses a broad range of risk, retirement, and health solutions, and CarrierHQ, an Indianapolis-based Insurtech firm focusing on usage based commercial insurance programs, on Tuesday announced the launch of their Last Mile Delivery insurance program. The program provides operators in the last mile delivery space with custom, affordable and continuous coverage solutions eliminating the uncertainty of frequent policy renewals while also providing much-needed flexibility by only charging a premium when vehicles are in use. Customers are provided a user interface and application process that is curated by a dedicated and experienced team ensuring that the customer experience and support is one of the best in the industry. The program expands upon the Small Fleet Advantage program developed by CarrierHQ in partnership with Aon ,which is the trucking industry's first and only commercial trucking insurance program to support 100% online quoting, buying, and binding of policies that offer monthly in-term adjustments based on driving data and is one of the fastest growing commercial trucking programs in the market. https://ift.tt/2ytPsnD
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The trucking industry depends on state and federally funded roads and bridges, and the recently passed infrastructure bill includes $110 billion for roads and bridges. But which states actually do a good job with their highway funds? The Reason Foundation, a libertarian think tank, recently released its 26th Annual Highway Report, which ranks the condition of roads and bridges and how much money the states spend to achieve that status. While the Reason Foundation does have an ideological bent towards small, lean government, it's important to keep in mind that other reports on America's roads and bridges typically come from trade organizations like the American Road & Transportation Builders Association, which are inclined to lobby for more work for their members via state and federal projects. The report ranked each state on 13 categories, including highway expenditures per mile, interstate and primary road pavement conditions, urbanized area congestion, bridge conditions, and fatality rates and then comparing those figures to how much the jurisdiction spent. A state spending money on highways and bridges without seeing any improvement on key metrics won't score well, but a state that does see improvements, even if it spent less money, would. In 2021, the leading states are North Dakota, Virginia, Missouri, Kentucky, and North Carolina. At the other end of the rankings are New Jersey, Rhode Island, Alaska, Hawaii, and New York. The list of top performers shows no clear urban or rural divide, as North Dakota won overall, but highly populous Virginia came in close second. Towards the lower end of the rankings, however, more urban states generally struggled. The rankings also call attention to the concentrations of poor infrastructure. The report found 43% of the urban arterial primary mileage in poor condition in just six states—California, Massachusetts, New York, New Jersey, Nebraska, and Rhode Island. Furthermore, about 25% of the rural Interstate mileage in poor condition is in just three states (Alaska, Colorado, and Washington). Five states—Rhode Island, West Virginia, Iowa, South Dakota, and Pennsylvania—still reported more than 15% of all their bridges structurally deficient, but that number has decreased overall with time. Perhaps most shockingly, the Northeast's cost of doing business on road building blew other regions out of the water. Three states—Massachusetts, New York, and New Jersey—spent more than $250,000 per lane-mile of highway. Further out west, five states—Missouri, South Carolina, West Virginia, North Dakota, and South Dakota—spent less than $30,000 per mile of highway. Take a look at the full report here. https://ift.tt/2ytPsnD Trucking news and briefs for Tuesday, Nov. 30, 2021: COVID-19 HOS waiver extended for certain haulersThe Federal Motor Carrier Safety Administration is extending the COVID-19 emergency declaration, which waives Part 395.3 (maximum driving time) of the Federal Motor Carrier Safety Regulations for carriers providing emergency relief related to the pandemic. The declaration, which was set to expire Tuesday, Nov. 30, will now be effective through Feb. 28, 2022. The extension continues to retain new features instituted with the last extension that began in September, including the narrowed regulatory range of the exemption -- which notably does not include the requirement to log time or use an ELD, if applicable. The September changes also included a new request for carriers to report their use of the exemption within 5 days after the end of each month. The move to add that requirement followed the agency's request in late summer to study the extent of the exemption's use around trucking. The reporting page asks for carriers' USDOT number; the number of trips made by commercial vehicles under the COVID Declaration; the type of goods transported; and for multiple goods transported, an indication of which commodity was transported the most. Carriers are able to report by accessing their portal accounts via Portal.FMCSA.DOT.gov/login. After logging in, carriers will need to access "Emergency Declaration Reporting" under the "Available FMCSA Systems" section of the page. The agency said it decided to extend the declaration because, “although the number of COVID-19 cases began to decline in the U.S. following widespread introduction of vaccinations, persistent issues arising out of COVID-19 continue to affect the U.S., including impacts on supply chains and the need to ensure capacity to respond to variants and potential rises in infections. Therefore, a continued exemption is needed to support direct emergency assistance for some supply chains." The hours waiver applies to drivers and carriers providing direct assistance, which means transportation and other relief services related to the immediate restoration of essential services (such as medical care) or essential supplies related to COVID-19 during the emergency. The waiver continues to be limited to the transportation of:
Supplies to assist individuals impacted by the consequences of the COVID-19 pandemic (e.g., building materials for individuals displaced or otherwise impacted as a result of the emergency) Direct assistance does not include non-emergency transportation of qualifying commodities or routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief added to obtain the benefits of this emergency declaration. To be eligible for the exemption, the transportation must be both of qualifying commodities and related to the immediate restoration of those essential supplies. Read the full exemption language via this link. Florida fleets offering free tuition to trucking schoolFleetForce Truck Driving School and Florida Trucking Association (FTA) announced Nov. 29 a joint initiative to put more truck drivers on the road. A group of commercial trucking companies that are FTA members are offering fully-paid tuition at FleetForce for those looking to obtain a commercial driver’s license and begin a career as a truck driver. In addition to covering the tuition costs, these companies have jobs waiting once students obtain their CDL and, in some cases, are offering sign-on bonuses and paying students while they attend training. “Trucking is a central part of growing and maintaining a strong economy, but it’s also a life-changing career opportunity for so many people,” said Tra Williams, president and CEO of FleetForce. “This new program is offering free training and guaranteed employment for applicants who meet the qualifications. There’s excellent earning potential in this this industry right now, and there’s a dire need for entry-level drivers. It’s a win-win.” “FTA is always looking for creative solutions to solve industry challenges,” said Dr. Alix Miller, president and CEO of Florida Trucking Association. “The driver shortage limits capacity for trucking companies, and directly impacts the economy and Floridians’ daily lives. This collaboration matches some of the most well-respected companies in the state with well-trained drivers, eager to get on the road.” As part of this program, FleetForce will conduct the pre-hire screening to ensure applicants meet the qualifications and criteria necessary to enter the training and obtain employment. https://ift.tt/2ytPsnD Temporarily raising the 80,000 lb. truck weight limit in California to 88,000 lbs. largely misses the mark when it comes to relieving historic congestion at the state’s ports, according to trucking experts. Governor Gavin Newsom recently announced that the state will begin issuing temporary permits to allow trucks to gross upwards of 88,000 pounds on state and intrastate routes between statewide ports and distribution centers. Newsom and others believe that increasing the truck's max weight by 4 tons will help clear out massive stacks of shipping containers at the ports and get freighters anchored offshore to the docks faster for unloading. Trucking experts, however, advise that the 8,000-lb. allotment will invite more equipment challenges and end up doing little to alleviate port congestion. “Nobody, and I mean nobody thinks this was anything more than putting lipstick on a pig. It’s still a pig,” said Joe Rajkovacz, director of governmental affairs and communications at the Western States Trucking Association (WSTA). “You’ll note in the order allowing 88,000 lb. stipulated axle weight limits were not being changed which in practical terms means you must have three axle trailers/split axle trailers (that’ll only get you to a gross of 86,000),” Rajkovacz continued. “That kind of equipment is rare in the intermodal market here in California.” Small fleet owner and WSTA member Bill Aboudi of Oakland Port Services agreed. “If you need to have the correct axles, that means you have to use special equipment,” said Aboudi. “They don't even have regular equipment, let alone special equipment made with extra axles. Where are you going to get them from? How is this going to help?” Overweight containers that could benefit from the temporary weight hike are scarce, Aboudi said. “The containers that are overweight are a fraction,” Aboudi continued. “I haul containers that are 2,000 pounds in cargo weight. How is that going to help to expedite this stuff? It's a very small fraction. It's the ag stuff and it actually affects exports out of Northern California more than imports in Southern California.” The California Trucking Association (Caltrux) also pointed out cargo concerns with the new measure. “We appreciate the administration’s continuing efforts to address port congestion, however, it’s unknown what impact the 88k lb. temporary permit will have at this time as lots of import cargo runs out of space before running out of weight,” said Chris Shimoda, Caltrux’ senior vice president of government affairs. “Truckers, cargo owners and the steamship lines will need to coordinate to obtain the permits where it makes sense and those containers won’t be arriving in the immediate future.” Tackling bigger problemsAs empty containers pile up at the ports, so do plenty of problems according to Caltrux, WSTA and leading 3PL provider NFI Industries. All three parties would like to see greater emphasis placed on reducing vast numbers of empties which, in addition to hampering port efficiency, have sparked public relations battles after being stacked in neighborhoods close to the ports."The buildup of empty containers off terminal is really the underlying reason for the congestion," Aaron Brown, senior vice president of the California Cartage Company at NFI Industries, said during NFI's recent 2022 Supply Chain Outlook Webinar. "They're taking up precious space or taking up precious chassis supply. We need to get the empty containers flushed out in the very short term to start getting some of the new cargo flowing into the import supply chain," Brown continued. Shimoda agreed. “The greatest operational issue facing port trucking at the moment are empty containers occupying chassis and congesting terminals,” he said. “That continues to be our primary focus.” Success however hinges on more than just shipping out empty containers. “Clearing the empties would obviously be a big help since you have to drop an empty to get a load out,” Rajkovacz said. “However, the ports here have atrocious turn times in the best of times and even if the empties were cleared, there is no guarantee of getting an appointment in a timely manner where the motor carrier wouldn’t be forced into a demurrage situation through no fault of their own.” The unprecedented freight surge at U.S. ports often leaves truckers waiting in long lines for hours, unable to make appointment times to pick up containers. Shipping lines can then hit truckers with demurrage, a fee that penalizes them for not showing up on time to get containers. In response, WSTA recently asked Newsom to enforce Senate Bill 45, a state law which prevents demurrage under certain circumstances such as port congestion. “The governor could do better by directing his AG office to enforce SB 45 especially in light of all the articles showing the steamship lines are profiting immensely off their own imposed dysfunction,” Rajkovacz said. Aboudi said demurrage policies have long favored shipping lines who he said are not only benefitting from the current freight surge but also from demurrage. “There's millions and millions of dollars that's going to these penalties that shouldn't be charged,” he said. “If California was to do their job by enforcing SB 45, we would eliminate all this—everything. There's no incentive for them not to pick up the empties. We should be able to charge them for storing their empties. Then you'll see how quickly they'll get those sweeper ships in to sweep [empty containers] out.” https://ift.tt/2ytPsnD TFI International (CCJ Top 250, No. 7) has acquired Carthage, Missouri-based reefer specialist D&D Sexton. A family-owned business for more than 40 years D&D has more than 150 company drivers and owner operators, more than 120 tractors and nearly 400 refrigerated and dry van trailers. “D&D is an excellent strategic fit with the organization, culture, and business model of our CFI operating company, adding strategic capacity and valuable, longstanding customer relationships to its temperature-controlled business," said Alain Bédard, TFI International chairman, president and chief executive officer. "In addition to an overlapping refrigerated freight network, D&D brings significant experience in local and shuttle operations." Bédard also noted "multiple near-term opportunities around costs, routes and pricing to enhance profitability, as well as longer-term opportunities to optimize equipment and the capacity network design." https://ift.tt/2ytPsnD Net trailer orders in October plummeted 40% – 16,700 units according to preliminary data released by ACT Research – and were off 70% from last year’s peak order month. Final October volume will be available later this month. Frank Maly, ACT Research director of commercial vehicle transportation analysis and research, noted ongoing market uncertainties have prevented OEMs from kicking off their normal order season and fleets have responded accordingly. Also, he noted, a tough October 2020 comparison as it was the second-highest net order month in industry history "when fleet investment plans rebounded from the spring COVID doldrums. "Challenges of supply-chain bottlenecks, labor shortages and material and component prices are forcing OEMs to proceed very cautiously,” he said. “Initial reports indicate that October build rates were similar to September. So OEMs, while able to maintain production levels and manage backlog horizons, continue to be unable to ramp efforts to meet the extremely strong and growing fleet demand for additional trailers.” Don Ake, FTR director of commercial vehicles, noted few OEMs booked decent order totals, but most held back on slotting 2022 commitments due to uncertainty about production capability, especially in the first three months next year. The major OEMs, he said, are rolling unbuilt 2021 orders into 2022 and filling any gaps with new orders. "Orders have been tepid all year. The challenge for many OEMs is not to acquire more backlog, but to manage the backlog they have. Fleets need lots of new trailers, however, the manufacturers are being careful about how and when to slot these commitments into the build schedule," Ake said. Some OEMs that are booking orders beyond Q1 2022 are adding material surcharges in order to price trailers fairly due to commodity prices that are high and volatile. "Fleets do want to get their orders scheduled for next year, but that may happen only a month or two at a time," Ake added. "October is the traditional start of the fall ordering season for the following year. However, this is far from a normal year. Orders will remain constrained until the supply chain permits OEMs to complete their bookings for 2022. Order numbers continue to understate the true demand.” Maly aded that he expects order acceptance to be closely managed for the foreseeable future, "with OEM challenges including the current strong backlogs that commit many of them for a major portion of next year and their inability to ramp production volume in response to surging fleet demand.” Trailer orders for the past 12 months total 277,000, according to FTR. https://ift.tt/2ytPsnD
A truck's aftertreatment system is a collection of components engineered to work together to reduce greenhouse gases, yet despite its well-intended environmental impact, almost no other part of a truck draws more scorn from fleet operators.
A clogged diesel particulate filter (DPF) can quickly impair a truck, dragging down fuel economy and increasing downtime. TravelCenters of America Vice President of Truck Service Homer Hogg noted that symptoms of a struggling aftertreatment system could include your engine losing power; poor MPG; exhaust smoke; coolant loss with no external leaks; intake leaks; and/or a clogged or extremely dirty air filter. "The aftertreatment system is designed to alert via the various warning lights as to a detected issue, which most likely will be attributed to increasing exhaust back pressure," added Mark H. Finger, Transervice senior vice president of maintenance & operations. "The warning light is usually the earliest indicator that the aftertreatment system requires attention. Therefore, it is crucial that action be taken in a timely manner to reference the manufacturer’s guidelines for the illuminated warning light and follow the prescribed actions, otherwise, system damage may occur and repair costs can be substantial." Chris Disantis, senior director of maintenance for Aim NationaLease, said fleets that count on a light or wait for a failure to occur to work on the system are setting themselves up for an expensive repair, and encouraged motor carriers to pay more attention to the warning signs that often surface before a dash light. "The unit starting to regen more frequently, excessive smoke, an upstream exhaust leak, using coolant with no visual external leak, along with unusual loss of power are other leading indicators that the system is compromised," he said. "Having a preventive maintenance program and cleaning the DPF, replacing the DEF filter and items like this based on the manufacturer’s recommendations can prevent these non-scheduled and high cost events." Chevron Lubricants Senior Staff Engineer Shawn Whitacre said the plugging of the DPF is a byproduct of it being good at its job and catching particulate matter and anything else that finds its way downstream, like engine oil that’s blown-by the rings. Much of what's trapped in the DPF (upwards of 90%) is attributable to engine oil additives. Metallic additives in engine oils are beneficial for the oil itself by neutralizing acids and providing wear protection, but Whitacre noted there are formulations available that produce less ash, thereby requiring less maintenance and possibly eliminating a DPF cleaning entirely. While cleaning the DPF alone may seem logical, Finger said addressing the system components as a whole produces better results in between service intervals. "Additionally, in order for the system to perform properly, the system must be tight and free of leaks. As such, a torque wrench should be utilized during reassembly of the band clamps, as over tightening can create flange distortion resulting in leaks," he said. "These leaks adversely affect sensor readings which will result in mismanagement of corrections being attempted by the ECM." Engine manufacturers have preferred, and sometimes required, maintenance procedures and Hogg said it can be confusing for truck owners and operators to determine maintenance intervals and optimal procedures. "Sometimes a liquid wash is preferred for DPFs versus a bake and blow routine, while replacing the DPF may be the best practice," he said. "A skilled technician using the correct service literature, software and hardware are highly recommended to identify the correct service and maintenance routines for a specific fleet and/or truck." https://ift.tt/2ytPsnD Trucking news and briefs for Friday, Nov. 26, 2021: New York passes law to become final state to allow under-21 CDL holdersNew York Gov. Kathy Hochul on Nov. 15 signed a bill into law that will allow 18-20-year-olds to obtain commercial driver’s licenses in the state, with certain requirements. New York’s new law requires under-21 CDL applicants to complete a “CDL Class A Young Adult Training Program,” as well as a minimum number of hours of supervised driving. The law requires that the training program “be no less than the Entry-Level Driver Training requirements prescribed by the Federal Motor Carrier Safety Administration.” It will include no less than 300 hours of behind-the-wheel training under the immediate supervision and control of an experienced driver. The law defines an “experienced driver” as a CDL holder at least 21 years old who has not had a reportable accident or violation for at least a year, and has a minimum of one year of commercial driving experience. New York was the last state in the U.S. to require CDL holders to be 21 or older. Alaska requires drivers to be 19 to hold a CDL and drive intrastate. All other states allow intrastate CDL holders at 18. The new law has no bearing on federal interstate driving laws, which currently require a CDL holder to be at least 21 to cross state lines. The infrastructure package signed into law earlier this month calls on the DOT to establish an apprenticeship pilot program for under-21 CDL holders to drive interstate. https://ift.tt/2ytPsnD Trucking news and briefs for Thursday, Nov. 25, 2021: U.S., Canada requiring cross-border truckers to be vaccinatedThe U.S. and Canadian governments are each requiring non-citizens entering their respective country – whether for essential or non-essential reasons – to be fully vaccinated. Beginning in early January 2022, the United States Department of Homeland Security will require all foreign national travelers crossing U.S. land or ferry ports of entry to be fully vaccinated for COVID-19 and provide proof of vaccination. The same vaccination requirement began in November for non-essential travelers entering the U.S. In Canada, beginning Jan. 15, 2022, truck drivers and other groups of travelers who have been exempt from entry requirements will only be allowed to enter Canada with proof of full vaccination. To meet the requirements of being “fully vaccinated” to enter the U.S., travelers must have received either two doses of the Pfizer, Moderna, AstraZeneca, Covaxin, Covishield, Sinopharm or Sinovac vaccines; or one dose of the Janssen/Johnson & Johnson vaccine. To meet the requirements of being “fully vaccinated” to enter Canada, travelers must have received either two doses of the Pfizer, Moderna, AstraZeneca, Covaxin, Sinopharm and Sinovac vaccines; or one dose of the Janssen/Johnson & Johnson vaccine. In both countries, the last doses must have been received at least 14 days before entering the country. The Canadian Trucking Alliance said in a press release Nov. 19 that it will be pressing both governments for more time to prepare for the cross-border mandates. “We are extremely concerned there is a perfect storm brewing,” said CTA president Stephen Laskowski. “In light of worldwide supply chain disruptions and delays, it’s unclear how the supply chain and the trucking industry, in particular, can withstand further turmoil and maintain the service levels required to deliver critical products Canadians and Americans need.” CTA estimated that 10-20% of Canadian truck drivers crossing the border (12,000-22,000), and 40% of U.S. truck drivers (16,000) traveling into Canada would exit the Canada-U.S. trade system should the vaccination mandate take effect in January 2022. Pilot car company ordered to pay $730M in wrongful-death suitA 2016 fatal crash in Texas involving an oversized load of more than 197,000 pounds being hauled by a Landstar Ranger-leased truck with a front and rear pilot car, resulted in a jury verdict of $730 million against the company operating the front pilot car. According to a press release from the prosecuting law firm Goudarzi & Young, Landstar Ranger previously settled for $50 million, and the rear pilot car company, S&M Pilot Service, settled for $1 million. The case proceeded against 2A Pilot Cars, the employer of the front escort vehicle. The crash occurred on Feb. 21, 2016, when Toni Combest was killed on a narrow bridge in Titus County, Texas, when her vehicle was struck by the nearly 200,000-pound truck. According to the allegations, while crossing the 26-foot-wide bridge with a 16-and-a-half-foot wide load, the cargo struck the 2001 Buick LeSabre being driven by Combest, ripping off the top portion of the car, killing Combest. The prosecutors alleged that, before the crash, the pilot cars and the truck did not communicate as they approached the bridge that a vehicle was traveling in the opposite direction. The jury awarded $480 million in compensatory damages and $250 million in punitive damages. https://ift.tt/2ytPsnD Carriers turning to the used truck market to supplement tractor count have ben met with record prices nearly every month, and that's not likely to change in the immediate future. Through the first 10 months of the year, used truck sales activity is 4% higher compared to the same period a year ago, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Average prices in October rose 3% at the dealership, as average miles and age gained 1% each compared to September. Compared to October of 2020, average price was 67% higher, with average miles and age greater by 3% and 5%, respectively. On a year-to-date basis, average price is 48% above its year-ago level for the first 10 months of 2020, with average miles down 2% and age unchanged on a year-to-date basis. "Strong used truck pricing into 2022 is essentially guaranteed," said J.D. Power Senior Analyst and Commercial Vehicles Product Manager Chris Visser, who added that residual value forecasts saw a notable increase in 3, 4, and 5 year residuals. Despite preliminary same dealer sales slipping into contraction territory on a month-over-month basis, ACT Research Vice President Steve Tam said at the unusual, on a seasonal basis, sequential softness held no sway over the longer-term year-to-date comparison, which edged higher. "The industry’s ability to outpace 2020, albeit by a small margin, is nothing short of miraculous, given all the challenges used truck sellers have faced this year. In the context of the lowest level of inventory the industry has probably ever seen, dealers have pulled out all the stops in an effort to provide buyers with as many units as humanly possible.” Tam said. “However, since dealers are still not able to meet the voracious demand, used truck prices continued on their upward trek in October. Given the dynamics of underlying fundamentals, namely freight and freight-hauling capacity, prices are likely to continue climbing higher in the near term.” The auction market isn't fairing any better and on a percentage basis, it battering would-be buyers more than retail. Month-over-month, the benchmark group of 4-6 year-old trucks brought 7.0% more money in October, according to J.D. Power. Compared to the first 10 months of 2020, this group is running 89.9% ahead, and compared to the same period of 2019, 71.2% ahead. Late- model trucks have appreciated 5.6% per month on average in 2021 to date. J.D. Power Senior Analyst and Commercial Vehicles Product Manager Chris Visser said there's a lingering sense of urgency in the auction lanes, "with buyers continuing to pay record pricing for desirable trucks. We’ll be keeping our eye out for an increased number of model-year 2019 trucks in the auction lanes in upcoming months as those units turn 4 years old," he said. "Otherwise, expect similar conditions through the new year." Visser noted that model-year 2019 deliveries were about 30% higher than model-year 2018 and that 2019 trucks turn 4 years old in January. "We’ve seen an incremental increase in the number of 2019’s sold in recent months," he said, adding that demand for these trucks is still outstripping supply. "This model year’s higher build could become more meaningful later in 2022 assuming economic conditions start returning towards historical trend." Any meaningful inventory of fleet trucks without drivers, Visser said, is most likely negligible at this point as the expansion of the driver pool combined with an all-time-high value of a used truck means there’s no rationale for holding idle inventory. "Otherwise, shipping backlogs and parts shortages have remained as critical as ever, instead of improving somewhat as we had predicted earlier in the year," he said. "This factor combined with superheated consumer spending are keeping used truck pricing in the stratosphere." https://ift.tt/2ytPsnD |
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