It was a mixed bag of financial trucking news over the previous week, with an uptick in for-hire vehicle tonnage and improving rates instantly market for van and reefer service providers.
Nevertheless, fleets continue to rest on their purses, sending out trailer orders down dramatically as the impact of tolls and still-weak freight basics continue to evaluate on the market.
Truck tonnage nudges upward
U.S. for-hire truck tonnage raised 0. 6 % in July, according to the American Trucking Associations (ATA), but has been reasonably level given that March.
“July vehicle tonnage boosted sequentially, yet did not get rid of the 0. 7 % decline in June,” said ATA primary financial expert Bob Costello. ” Since March, vehicle tonnage has actually been in a tight range. Fortunately is vehicle freight quantities haven’t fallen much over that duration, but we are not seeing several boosts either. In July, there were blended vehicle drivers of vehicle tonnage with real estate begins and retail sales up, while producing output was level to down relying on the statistics.”
Tonnage is the same year to date over the very same period in 2024, while July’s tonnage was 0. 1 % off year-ago levels.
Trailer orders fall sharply
FTR reports preliminary internet trailer orders dropped sharply in July to 7, 794 devices, down 39 % from June, but 23 % greater year over year on weak 2024 volumes.
Orders stay well listed below the 10 -year July average of 14, 856 devices.
“The U.S. trailer market is now under placing pressure as toll exposure widens. Greater tariff prices for many significant U.S. trading partners started on Aug. 7, “claimed Dan Moyer, FTR’s elderly expert, industrial automobiles.
“Possibly much more directly significant for the trailer industry is a development of the 50 % steel and light weight aluminum tariffs as of Aug. 18 that obviously influences not only imported vital parts yet likewise the steel and light weight aluminum web content of totally assembled imported trailers.”
Moyer went on to say OEMs and distributors must make a decision whether to take in margin losses or increase costs.
“Meanwhile, numerous fleets are extending substitute cycles– leaning a lot more greatly on utilized trailers– and delaying expansion, thus wetting need for new build,” Moyer included.
“The market is moving towards enhanced rate sensitivity and mindful capital expense with some supply chains likely taking into consideration domestic reorientation– however at structurally higher expense levels. Plan unpredictability is intensifying volatility, making lasting preparation increasingly tough.”
ACT Study counted 8, 700 orders, a drop of more than 6, 600 systems from June.
“Sequentially, reduced July internet order consumption was anticipated, as it is just one of the weak order months of the annual cycle, particularly given that June’s information stunned to the upside,” said Jennifer McNealy, supervisor curriculum vitae marketing research and publications at ACT Research.
“While orders, no matter comparisons, support build rates in 2025, worry continues to be that moderating financial task, ongoing weak for-hire carrier productivity, and unclear plan changes stay as difficulties to stronger demand. ACT’s expectations for restrained construct and purchase intake levels throughout 2025 stay intact.”
Trucking conditions worsened in June
FTR’s Trucking Conditions Index was up to an adverse reading of – 1 83 in June, after spiking suddenly to 3 56 in May.
The adverse swing was mainly because of products rates and fuel rates, FTR reported. It anticipates the index– which gauges five metrics impacting general market wellness– will continue to be mainly neutral for the remainder of the year.
“We still forecast a gradually however only decently much more desirable market for carriers next year. However, swings in products quantity and gas prices– and to a lower level, freight prices– continue to produce volatility in trucking conditions,” stated Avery Vise, FTR’s vice-president, trucking.
“Capability utilization has been one of the most secure aspect, however it has been just marginally valuable to trucking companies. So far, the economic climate is weathering tariffs and various other anxieties better than expected, and our most recent freight expectation is not as weak as it was previously. A minimum of in the near term, though, we still believe projection risks are weighted a lot more to the disadvantage than the advantage.”
Area market prices get a lift
Spot market rates for completely dry van and refrigerated devices got a better-than-expected bounce in the week ended Aug. 15 [
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Truckstop.com and FTR Transportation Intelligence reported reefer prices climbed for the 3rd consecutive week for the very first time this years and are over year-ago degrees. Dry van prices recuperated the previous week’s loss and were slightly over year over year levels for the first time in six weeks.
Flatbed rates were higher than the same week in 2024 for the first time in five weeks.
While tons posts were up, so too were tools postings, keeping the Market Need Index flat.