FTR’s July Shippers Conditions Index fell reflecting least favorable market conditions for shippers
Fuel costs aside, gradually stronger freight volumes, utilization, and rates likely will soften conditions toward neutral by mid-2024.
ACT Research projects weaker U.S. tractor market in 2024
Those factors include ongoing pent-up vocational truck demand, strong tractor demand in Mexico, and labor hoarding.
FTR: Fuel costs chip away at favorable shippers market
Overall market conditions for shippers were stable and positive during June.
Parts Leading Indicator continues to trend downward, signaling slow aftermarket parts sales
PLI has declined for eight consecutive months.
Fuel costs chip away at favorable shippers market reflected in FTR’s June Shippers Conditions Index
“If fuel prices continue to increase, it will push less positive readings in the SCI in the months ahead.”
Used truck market declined in July
Compared to June 2023, average retail price declined 4%, while miles and age both declined 2%.
U.S. freight market bouncing along the cycle bottom
Driver capacity models suggest the record declines in freight rates should be pushing out more jobs.
June used truck market sees historically expected sales gains
Compared to June of 2022, volumes and miles increased 24% and 1%, respectively, but price and age declined 27% and 9%.
Work Truck Solutions releases Q2 2023 Commercial Vehicle Data Report
Continuing demand combined with increasing inventory suggests we can expect sales to grow throughout the balance of 2023.
Freight market rebalances as cycle nears turning point
Destocking likely peaked recently, with March container imports down 30% y/y, versus April’s decrease of 20% y/y and signs of further improvement in May.
