Monday, December 7, 2009

Why Truck Capacity Will Get Worse in 2010

Below is an article from FTR Associates. FTR is a transportation industry analysis company that keeps a tab on the health of the transportation industry - especially trucking and rail.

It appears that they are anticipating higher freight volume in 2010, but capacity of new trucks will lag behind the uptick in freight for next year.

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NASHVILLE, Ind. -- FTR Associates increased its 2009 Class 8 forecast due to a surge in orders in October, but heavy truck demand for 2010 is likely to slow after EPA 2007 engine inventory is exhausted.

According to the latest issue the North American Commercial Truck and Trailer Outlook published by FTR, orders are likely to reduce early 2010 freight-induced demand, as the order activity in October was driven by truck operators lining up for the last of pre-2010 emissions engines.

Says FTR President Eric Starks: "2009 will end with modest freight growth, and we expect 2010 growth to be in the 2.8 percent range.

"However, given the huge decline in freight over the last few years, the increase in freight in 2010 will not be enough to entice fleets in large numbers to buy new, more expensive technology when such equipment is first made available."

Many carriers, he adds, have usable miles on older equipment to get them through the initial up-tick in freight demand "without taking the risk of adding unfamiliar engine technology to their fleet."The full North American Commercial Truck and Trailer Outlook Report is available to FTR subscribers.

For more information, please contact Eric Starks at 888-988-1699 ext. 45 or make an inquiry to hlile@ftrassociates.com.

For a link to this article, click here

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