For-Hire Trucking Supply-Demand Balance Reverses Direction 

“The drop in June left the index well below the twelve-month average of 62.3,” said Tim Denoyer, ACT Research’s Vice President and Senior Analyst. He continued, “The for-hire industry made it through contract season in a very tight capacity situation and secured record rates at least into spring 2019. However, both accelerating Class 8 tractor production and slowing freight could continue to loosen the supply-demand balance from here.”

As part of this month’s survey, ACT Research queried fleets about the kind of lead times and price increases being seen for 2019 Class 8 truck orders. Denoyer commented, “Responses to this two-part question show lead times averaging six to eight months, while those who opted to mention price increases indicated they are about 3%.”

The June fleet purchase intentions reading indicated an uptick in equipment demand, with more than 58% of respondents planning to buy trucks in the next three months. ACT Research believes that while improvement was reported in June, the recent softness in equipment demand readings may reflect the increasing scarcity of production slots remaining this year. Over the past twelve months, the buying index has averaged a strong 58% reading.