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ACT Research For-Hire Trucking Index: Industry responding to strong demand
COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index showed the supply-demand balance falling to 55.3 on a seasonally adjusted basis in August from 56.9 in July.
The 3.9 percentage point decrease in the Volume Index more than offset a 2.5 percentage point decrease in the Capacity Index, relative to July.
“The August result is below the 2017-2018 average of 61, and it appears that a gradual balancing is taking place as the industry responds to strong demand by adding capacity,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “At the same time, a volume slowdown is increasingly evident. While expectations seem high for another strong year of rate increases in 2019, both accelerating Class 8 tractor production and slowing freight growth are likely to loosen the supply-demand balance from here.”
As part of this month’s survey, ACT Research queried fleets about how peak season is progressing and their expectations for the holidays.
“The majority of responders indicated that they are quite busy and anticipate a very active holiday season,” Denover said. “One even noted that it is ‘going to be hard to keep current customers happy.’”
The August fleet purchase intentions reading indicated a downtick in equipment demand, with only about 55 percent respondents planning to buy trucks in the next three months.
This is down from fleet purchase intentions around 60 percent in July.
After record year-to-date orders, this series should remain strong as long as the trucks that have been ordered are built.
ACT is a publisher of new and used commercial vehicle industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, as well as the banking and investment community in North America, Europe and China.
For more information on ACT, please visit http://www.actresearch.net.