Heavy-Duty Truck Orders Hit a Record Pace

[Leroy N. Soetoro]

https://www.wsj.com/articles/heavy-duty-truck-orders-hit-a-record-pace-
1522854965?cx_testId=16&cx_testVariant=cx&cx_artPos=3&cx_tag=contextual&cx
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Trucking companies ordered big rigs at a record pace in the first quarter,
racing to meet growing demand in a red-hot U.S. freight market.

Fleets ordered 133,900 heavy-duty trucks in the first three months of the
year, nearly double the orders from the first quarter of 2017, analyst
group FTR said in a report released Tuesday. The report included final
numbers for January and February and a preliminary estimate of 46,300 new
orders in March.

The ordering extends a strong move to build up trucking capacity that
began in the middle of last year as the U.S. economy picked up steam.

Fleets “are getting calls to move shipments and they can’t do it because
they don’t have the capacity,” said Don Ake, FTR’s vice president for
commercial vehicles, in an interview Wednesday, adding, “The last three
months, they’re ordering trucks and trailers like crazy to try and get the
capacity.”

ACT Research, another transportation equipment analysis group, said in a
separate report Tuesday that it counted 46,900 orders for heavy-duty Class
8 trucks—the big rigs that haul goods mostly between cities—more than
double the orders from a year ago.

Trucking-industry figures suggest orders for new vehicles are lagging
behind growing U.S. freight demand, however. DAT Solutions LLC, which
matches available loads to trucks in the spot market, says shipments on
its “load board” rose 27% from February to March while the number of
trucks available increased only 14%.

The gap between demand and capacity has led truckers to charge higher
prices, giving fleet owners more cash to replace older vehicles and
greater confidence in future demand. DAT says average rates on the spot
market were up nearly a third in March from the same month a year ago.

Many trucking companies also reaped a windfall in the tax law enacted in
January, and they appear to be investing some of the gains in new trucks.
“The fire was already burning nicely and Congress dumped gasoline on it,”
said ACT analyst Kenny Vieth.

The persistent growth in orders has pushed backlogs at truck makers to a
nearly three-year high, according to ACT.

Shares in truck manufacturer Navistar International Corp. NAV -3.98% were
down 1.1% to $33.97 in trading early Wednesday, while shares at rival
truck maker Paccar Inc. PCAR -3.04% were off 0.03% to $65.69. Engine maker
Cummins Inc.’s CMI -2.78% shares were down 1.2% to $158.

Write to Erica E. Phillips at ***@wsj.com and Jennifer Smith at
***@wsj.com
--
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party ran out of gas and got run over by a Trump
truck.

Congratulations President Trump. Thank you for cleaning up the disaster
of the Obama presidency.

Under Barack Obama's leadership, the United States of America became the
The World According To Garp.

ObamaCare is a total 100% failure and no lie that can be put forth by its
supporters can dispute that.

Obama jobs, the result of ObamaCare. 12-15 working hours a week at minimum
wage, no benefits and the primary revenue stream for ObamaCare. It can't
be funded with money people don't have, yet liberals lie about how great
it is.

Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.

[#BeamMeUpScotty]

Post by Leroy N. Soetoro
https://www.wsj.com/articles/heavy-duty-truck-orders-hit-a-record-pace-
1522854965?cx_testId=16&cx_testVariant=cx&cx_artPos=3&cx_tag=contextual&cx
_navSource=newsReel#cxrecs_s
Trucking companies ordered big rigs at a record pace in the first quarter,
racing to meet growing demand in a red-hot U.S. freight market.
Fleets ordered 133,900 heavy-duty trucks in the first three months of the
year, nearly double the orders from the first quarter of 2017, analyst
group FTR said in a report released Tuesday. The report included final
numbers for January and February and a preliminary estimate of 46,300 new
orders in March.
The ordering extends a strong move to build up trucking capacity that
began in the middle of last year as the U.S. economy picked up steam.
Fleets “are getting calls to move shipments and they can’t do it because
they don’t have the capacity,” said Don Ake, FTR’s vice president for
commercial vehicles, in an interview Wednesday, adding, “The last three
months, they’re ordering trucks and trailers like crazy to try and get the
capacity.”
ACT Research, another transportation equipment analysis group, said in a
separate report Tuesday that it counted 46,900 orders for heavy-duty Class
8 trucks—the big rigs that haul goods mostly between cities—more than
double the orders from a year ago.
Trucking-industry figures suggest orders for new vehicles are lagging
behind growing U.S. freight demand, however. DAT Solutions LLC, which
matches available loads to trucks in the spot market, says shipments on
its “load board” rose 27% from February to March while the number of
trucks available increased only 14%.
The gap between demand and capacity has led truckers to charge higher
prices, giving fleet owners more cash to replace older vehicles and
greater confidence in future demand. DAT says average rates on the spot
market were up nearly a third in March from the same month a year ago.
Many trucking companies also reaped a windfall in the tax law enacted in
January, and they appear to be investing some of the gains in new trucks.
“The fire was already burning nicely and Congress dumped gasoline on it,”
said ACT analyst Kenny Vieth.
The persistent growth in orders has pushed backlogs at truck makers to a
nearly three-year high, according to ACT.
Shares in truck manufacturer Navistar International Corp. NAV -3.98% were
down 1.1% to $33.97 in trading early Wednesday, while shares at rival
truck maker Paccar Inc. PCAR -3.04% were off 0.03% to $65.69. Engine maker
Cummins Inc.’s CMI -2.78% shares were down 1.2% to $158.

If we're lucky the GDP growth rate will reach 7% or the economy will
crash and burn again.