Heavy Duty Trucking

AUG 2014

The Fleet Business Authority

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22 HDT • AUGUST 2014 www.truckinginfo.com Quotable "Extra trucking demand is increasingly being pushed into the spot market; no longer is it being given to the 'baseload' contract carriers." – Noel Perry, Principal, Transport Fundamentals, on Twitter Trucking's Most Respected Business Report hotline Walcott fireworks 44,000 drivers, families and local residents flocked to the Iowa 80 Truckstop in Walcott, Iowa, last month during the 35th Walcott Truckers Jamboree. View more photos from the event at www.truckinginfo.com/ walcott2014 Strong growth in sleeper equipment raises questions Truckload freight availability remained elevated on the spot market in June, according to the DAT North Ameri- can Freight Index, up 50% from last year. Demand was driven by robust seasonal produce harvests, combined with a surge of manufacturing and construction-related freight. The in- creased demand and capacity constraints caused spot market truckload rates to rise year over year. www.truckinginfo.com Truckload freight availability remained elevated on the spot market in June, according to the DAT North Ameri- can Freight Index, up 50% from last year. Demand was driven by robust seasonal produce harvests, combined with a surge of manufacturing and construction-related freight. The in- creased demand and capacity constraints caused spot market truckload rates to rise year over year. Source FTR: The latest informa- tion from FTR shows that there has been an increase in sleeper cab market share in the heavy truck equipment market. The total Class 8 North American retail sales market has been improving. The freight market has been healthy, while the demand for drivers is also increasing. The latest data for June 2014 shows North American retail sales spiking to 24,915 units. This is up from 17,600 units seen in February. The largest growth in sleeper market share is coming from the U.S. tractor segment. In June of this year, 40.5% of all North American retail sales were for a tractor with a sleeper and sold in the U.S. This segment has been up an average of 2.5% above its 5-year average since the beginning of the year. Normally you would expect to see all of the equipment markets seeing similar increases in demand. However, historically, during some times of rapid expansion in the sales market. we tend to see U.S. tractor sleeper demand outpacing other equipment. This seemed to occur during the 2011 surge after orders spiked in the spring. This was to be expected, since long-haul truckload fleets were dominating demand with strong replacements of older equipment. This year is different. The replacement market is not driving recent demand, and sales activity is broad-based among all types of carriers, not just the large truckload fleets. The latest data has us asking two questions: 1. Is the traditional long-haul market taking off? Or, 2: Are the new hours of service rules impacting how fleets are buying equipment? FTR believes that the regulatory environment, such as the hours of service, is having the largest impact. However, it is still too early to say for sure. For more info visit www.ftrintel.com/hdt or contact Eric Starks at (888) 988-1699. PHOTO 2500 2000 1500 1000 500 0 ( DEC ) JA N JUNE JULY AU G SEP OCT N OV DEC FEB MAR APR M AY Index: August 1996 = 100 Spot Freight Index (Information provided by DAT Solutions) 2010 2011 2012 2013 2014 U.S. Class 8 tractor sleeper sales as a percent of North American retail sales market share 0.4 0.3 Jan Feb Mar Apr May Jun 5-year average 2014

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