Trucks move goods. Goods and services make an economy. Trucks run on petroleum. Petroleum prices are down solidly. Yet trucking appears to be hurting. What’s going on?
And by the way, may God bless all the long (and short) haul truckers.
Fast forward one quarter when we now have another three months of Class 8 truck data, and unfortunately the orderbook has gone from bad to worse. As the WSJ reports, orders for new big rigs plunged and inventories of unsold trucks soared to their highest levels since just before the financial crisis, as uncertainty about future demand and a weak market for freight transportation weighed on truck manufacturers.
About 67,000 Class 8 trucks are sitting unsold on dealer lots, after sales in March dropped 37% from a year earlier to 16,000 vehicles, according to ACT Research. Class 8 trucks are the type most commonly used on long-haul routes. Inventories haven’t been this high since early 2007, said Kenny Vieth, president of ACT.
Below, perhaps the greatest “trucker song” of all time. Thing is there are so many good ones from which to choose.