Strong Freight Rates Driving New Commercial Vehicle Demand

ACT Research says the year started with a whimper, and in spite of the pandemic pause in Q2, is going out with a bang

According to ACT’s latest release of the North American Commercial Vehicle OUTLOOK, the strength in new commercial vehicle demand is a direct result of strength in freight rates.

According to Kenny Vieth, ACT’s President and Senior Analyst, “This year started with a whimper, and in spite of the pandemic pause in Q2, is going out with a bang.” He added, “Comparing October’s order rate to 12-month order totals generates some impressive comparisons and highlights the across-the-board order surge that began in September. Additionally, on a preliminary basis, November orders are at or above recent levels.”

Vieth continued, “An ACT-favorite axiom is, ‘fleets buy equipment when they make money,’ and truckers are going to make a lot of money in 2021.” He explained, “A strong freight pipeline and structural and regulatory challenges surrounding driver recruiting suggest an unprecedented level of intractability in the supply-demand balance. Barring an exogenous event, the data suggest strong carrier profits are likely to extend through 2021 and well into 2022.”

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