COLUMBUS, Ind. — It’s been a bumpy ride for for-hire carriers, as evidenced by a 14-year low in net income among publicly traded truckload carriers.
But things may soon be looking up, according to ACT Research’s latest State of the Industry: North American Classes 5-8 report.
“After a year of cost-defying buying by private fleets, we project this month is likely the last for above replacement-level U.S. Class 8 tractor capacity additions,” the report states.
Final North American Class 8 net orders totaled 15,850 units in April, 16,900 seasonally adjusted, up 32% against last year’s easiest comparison.
U.S. Class 8 tractor orders fell 25% year-over-year in April. Total Classes 5-7 orders rose 1.9% year-over-year to 18,863 units, or 19,300 seasonally adjusted.
“April orders reinforce our belief that in addition to weak for-hire market conditions, private fleet expansion is slowing,” according to Kenny Vieth, ACT’s president and senior analyst. ”This would be welcome news for the beleaguered for-hire market, as the journey back to healthier financials starts with capacity restraint.”
Vieth added that the DAT van load-to-truck ratio, thanks to contracting spot market equipment levels, has pushed up to 4.0, seasonally adjusted, from an average of 3.3 in 2023.
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
