ACT Research reports the business environment for heavy-duty trucks “is about as good as any we have seen in 35 years of monitoring heavy-duty market conditions.”
The list of things to like includes current economic and freight conditions, and commercial vehicle demand.
“From the freight perspective, spot rates continue to post new record levels and are currently inverted relative to contract rates, a clear signal that contract rates will continue to rise,” said Kenny Vieth, ACT’s president and senior analyst.
“Additionally, low business inventories and backed-up ports on both coasts have created a backlog of freight, providing excellent forward visibility for continued strong demand for freight services.”
In terms of truck demand, “From a commercial vehicle demand perspective, orders, from medium-duty trucks to heavy-duty tractors and trailers, remain elevated, and backlogs for tractors and van-type trailers, at current build rates, are beyond 12 months, meaning that overall backlog-to-build ratios extend well beyond traditional ranges,” Vieth said.