In remarks to the House Committee on Transportation and Infrastructure, MIT Professor David Correll recently outlined yearslong research conducted by the MIT Freightlab, detailing a chronic underutilization of the American truck driver.
Below are some highlights and reporting from the event. Interestingly there was additional research regarding whether electronic logs can predict if a driver will...
After taking advantage of unexpected cost savings and profit windfalls caused by a historic pandemic, the trucking industry is already facing an uphill climb that could result in carriers closing shop.
“With costs increasing in diesel fuel, driver compensation and equipment purchase/leasing, carriers are likely to face higher operational costs in 2021 and 2022,” according to the to the latest analysis on trucking expenses released Tuesday by the American Transportation Research Institute (ATRI).
“...
https://www.freightwaves.com/news/trucking-braces-for-uphill-cost-climb-in-2022
Chart of the Week: 3, 4, and 5 Year Old Used Truck Prices, New Class 8 Orders – USA SONAR: UT3.USA, UT4.USA, UT5.USA, ORDERS.CL8
Used truck prices have increased by over 50% for 3-year-old models over the past 12 months. With the larger fleets struggling to recruit new drivers to the space, cost barriers will limit the small fleet/owner-operator growth as well, helping to extend the capacity crunch on all levels.
It is a fairly well-known fact inside the trucking industry that over 90% of the...
https://www.freightwaves.com/news/high-costs-will-limit-capacity-growth-in-trucking
Hot Takes
The Golden State isn’t proving to hold up to its name with recent Assembly Bill 5. As the bill was written, independent contractors must operate under the “ABC Test.” Once a contractor satisfies all three requirements below, he or she can operate as an independent contractor in the state of California. The requirements are:
https://www.freightwaves.com/news/check-call-not-much-gold-in-the-golden-state
Ryder System (NYSE: R) was set to have a significantly better second quarter in 2021 than 2020, when it posted a big loss on the back of a drop in revenue because of COVID-19 and writedowns connected to the value of its used truck fleet.
But the company blew away projections with a non-GAAP Q2 earnings-per-share figure of $2.40 that was better than consensus estimates by $1.02 per share, according to SeekingAlpha. The company’s revenue of $2.38 billion was up 25.3% from the second quarter of...
When it comes to the current state of used trucks, forget what Econ 101 teaches about supply and demand. Rather than one impacting the other, both are driving used truck prices to a post-Great Recession peak.
“On the supply side, ongoing new truck production constraints are causing many buyers to look for low-mileage used trucks as a substitute,” Chris Visser, J.D. Power Valuation Services commercial vehicles senior analyst and product manager, told FreightWaves. “On the demand side, the freight...
Prices of newer used trucks with low mileage are reaching historic levels with new truck deliveries slowed by supply chain issues and an ongoing shortage of microchips.
“[Auction] pricing for trucks with under 600,000 miles is in the stratosphere,” J.D. Power Valuation Service reported in its latest Commercial Truck Guidelines newsletter. For example, model-year 2018 trucks with under 500,000 miles are selling at auction for around $70,000.
Compared to the first four months of 2020, Power’s...
https://www.freightwaves.com/news/late-model-used-truck-prices-go-stratospheric
The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, congestion played a role in J.B. Hunt Transport Services posting a worse year-over-year intermodal margin growth than expected. Plus, even preparation sometimes isn’t enough to stop a ransomware attack, and business-to-business activity has rebounded well from early 2020.
Lost opportunityCongestion and gate restrictions from rail partners hampered J.B. Hunt Transport Services’ (NASDAQ: JBHT) Q4...
https://www.freightwaves.com/news/the-daily-dash-lost-opportunity-for-jb-hunt
The rebound in Class 8 used truck sales continued in August. Prices and sales rose with fleets desiring newer trucks with better fuel economy and safety equipment.
J.D. Power Valuation Services reported a third consecutive month of improving retail sales in August.
“Since mid-June, we’ve seen an increase in selling prices for the lowest-mileage iron,” said Chris Visser, J.D. Power Valuation Services commercial vehicles senior analyst and product manager.
Power said the average sleeper tractor sold...
https://s29755.pcdn.co/news/used-truck-values-and-demand-on-the-rise
#kt-adv-heading_b28777-6b, #kt-adv-heading_b28777-6b .wp-block-kadence-advancedheading {font-size:20px;line-height:25px;font-weight:400;font-family:Amiko;}
To read the full article, click here.