Supply chain disruption

Class 8 catch-up largely over as replacement iron drives orders

Pent-up demand for new Class 8 trucks in a slowing freight market has rebalanced equipment orders to replacement purchases.

This is not an altogether bad thing as manufacturers look to a slower quarter with more holidays.

“The Class 8 backlog should rise by around 3,400 units when full October data are released in mid-November,” Kenny Vieth, ACT Research president and senior analyst, said. “If those numbers hold, Class 8 backlogs will have ended October at around 165,000 units.”

That’s a healthy...

https://www.freightwaves.com/news/class-8-catch-up-largely-over-as-replacement-iron-drives-orders

Navistar orders fall but deliveries helped strong Q2 at parent Traton

Traton SE, the parent company of Navistar International, reported dramatically higher second-quarter sales and profits compared with a year earlier. But economic uncertainty resulted in significantly lower incoming orders.

Traton’s adjusted operating profit in the April-June period reached $1.15 billion compared with $438.5 million a year ago. Q2 revenue totaled $12.92 billion compared with $10.47 billion in the same period a year earlier.

Navistar reported adjusted operating profit of $190.4...

https://www.freightwaves.com/news/navistar-orders-fall-but-deliveries-helped-strong-q2-at-parent-traton

Maersk discloses mechanical issues disrupted trans-Pacific air cargo service

Ocean shipping and logistics giant Maersk acknowledged this week that persistent mechanical problems prevented its cargo airline from operating two new Boeing freighter aircraft for several weeks on a new route between South Korea and South Carolina.

Business consequences from the grounded aircraft have been limited because the global economic slowdown has decreased interest in air transport, but some customers have experienced delays.

Maersk’s repurposed private airline made its North American...

https://www.freightwaves.com/news/maersk-discloses-mechanical-issues-disrupted-trans-pacific-air-cargo-service

Falling used truck prices push largest dealership network to sidelines

Falling prices for used trucks might be good news for those in the market for older iron. But they are having an opposite effect on Rush Enterprises, the nation’s largest new and used truck dealership network.

“Looking ahead, we expect used truck values to continue to decline, and we plan to maintain our low inventory levels until conditions begin to normalize,” Rush Enterprises CEO Willam “Rusty” Rush said Thursday on the company’s earnings’ conference call.

Rush had strong financial results in...

https://www.freightwaves.com/news/falling-prices-of-used-trucks-push-largest-dealership-network-to-sidelines

Trailer orders slow in January, suggest a return to normalcy

Trailer orders in January fell back significantly from a huge December. But the numbers suggest a return to normal order patterns after more than two years of disruption.

Manufacturers have plenty of pending orders to build, both trucks and trailers.

“Orders continue to flow in and we still have pent-up demand to fill,” Chris Hammond, executive vice president of sales for Great Dane, told FreightWaves. 

“We are seeing some customers defer ordering in 2023 as the economy begins to slow down as talk...

https://www.freightwaves.com/news/trailer-orders-slow-in-january-suggest-a-return-to-normalcy

Cummins on board for solid ’23 in truck equipment

Engine maker Cummins Inc. tracks with OEM projections for solid North American demand for new trucks for at least the first half of 2023. If the Chinese market recovers, look for a possible profit spike.

Freight rates, especially spot rates that account for roughly 15% of the market that quote loads by the day or hour, have dropped significantly. Contract rates are not far behind. But pent-up demand for new equipment remains a positive tailwind, manufacturers agree.

“We continue to see healthy...

https://www.freightwaves.com/news/cummins-on-board-for-solid-23-in-truck-equipment

FourKites enhances supply chain visibility with Data Connector

The modern supply chain is a data game — the more data a company has, the better it’s able to avoid and react to local and global disruptions.

The problem for many companies, though, is access to that data.

On Thursday, supply chain visibility platform FourKites launched a product designed to share its catalog of insights more easily. The new offering, Data Connector, allows customers to leverage the firm’s data directly through their own business intelligence systems, whereas in the past they...

https://www.freightwaves.com/news/fourkites-enhances-supply-chain-visibility-with-data-connector

Volvo Group sets Q4 delivery record as supply chain issues linger

Sweden’s Volvo Group reported record fourth-quarter truck deliveries of 62,800 trucks but said ongoing supply chain issues and higher energy costs forced it to throttle back order intake.

The mixed report countered a generally positive outlook from competitor Paccar Inc., which reported a record market share for its European DAF Trucks unit on Tuesday.

Volvo Group is the parent of Volvo Trucks North America (VTNA) and Mack Trucks. It reported net Q4 sales rose 31% to 134.3 billion Swedish Crowns...

https://www.freightwaves.com/news/volvo-group-sets-q4-delivery-record-as-supply-chain-issues-linger

White House touts easing of supply chain pressures

The White House has outlined progress on commitments made over the last two years to ease supply chain backups caused by the pandemic but failed to acknowledge recent signs that improvements have been losing steam.

“Just over two years ago, then-President-elect Biden addressed the nation in a prime time speech to propose his economic agenda: a plan for a strong, worker-centered economic recovery from the pandemic, followed by long-term investments to lay the foundation for more durable,...

https://www.freightwaves.com/news/white-house-touts-easing-of-supply-chain-pressures

Trucker age-exemption bill reintroduced in new Congress

Underage truck drivers would be exempted from restrictions that prohibit them from moving containers to and from marine terminals as proposed in a Republican-backed bill reintroduced in the new Congress.

The Ceasing Age-Based (CAB) Trucking Restrictions Act was introduced this week by U.S. Rep. Brian Mast, R-Fla., with 19 co-sponsors, all Republican. It is identical to a bill Mast introduced in late 2021, the Supplying America Needs Truckers Aged 18 (SANTA) Act, which garnered 21 co-sponsors...

https://www.freightwaves.com/news/headline-trucker-age-exemption-bill-reintroduced-in-new-congress

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