With 2019 just around the corner, there is plenty of curiosity regarding the economic status of the trucking industry. The MarketWaves 18 conference, presented by FreightWaves, did address concerns of what is to come for such a crucial industry. Below is the summary of this event, where monitoring past freight trends allows predictions for what is to come.
The conference specified that stabilization of the economy (2017-2018) was a result of tax cuts and deregulation. Though there is still a possibility of a recession, it is unlikely. One possible cause of this recession includes higher interest rates from a soured trading relation with China. Another cause could be a rise in national debt.
Blue-collar industries, including automobiles (auto transport and car delivery) and construction (design and development), anticipate an increase in 2019 economic projections. Unfortunately, many of these industries expect a return to decline in 2020.
Consequently, as the demand for drivers increases, the demand for trucks decreases. By 2019 used trucks will drop by 40% in value which is solely beneficial for the buyer. While on the opposite end of the spectrum, the purchase of a new truck isn’t warranted despite the new tax reduction on prices.
The convention also did recognize some positive changes in the trucking industry.
Development for both self-driving trucks and electric trucks is an important prospect for the future. Although the vision for such technology is an exciting one, the organization to set up such advancements will not occur for at least 5 years.
Some 2018 trends will continue like many drivers’ attraction to smaller fleets. Since these smaller fleets allow more flexibility and accessibility of market and trading information, many prefer it.
And as of March 29, 2019, introducing the creation of a spot rate futures exchange. This partnership consisting of FreightWaves, Nodal Exchange and DAT will offer rate tracking and a price point archetype to develop order in the grander scheme of the truck industry.
Forecasting the new year and collecting data can allow coverage for timing mistakes or potential declines. Whether it’s something as simple as a late shipment or an untimely accident, being prepared for the obstacles to come is vital.