It’s been a great year for new truck sales in Australia, driving that demand is the construction boom, especially in Sydney, and the generally strong Aussie economy.
And when the economy is going well, generally road transport businesses are also doing well.
It’s a similar situation in the U.S. where, whether you care to admit it or not, the Donald Trump-led economic resurgence is creating good times for the truck industry.
The latest Trucking Conditions Index from freight transportation consultancy FTR shows a strong lift in conditions in the U.S. with a reading of 9.48, up from 3.5 in September.
Based primarily on transport contract rates, FTR say the improved conditions can be put down to a mixture of factors, including a strong economy, hurricane recovery efforts and the electronic logging device (ELD) mandate.
Jonathan Starks, chief operating officer of FTR, tells us 2018 is also looking good for the industry.
“The TCI is nearing a double-digit number, which indicates that there are big opportunities for carriers with regard to both rates and the loads they choose to carry.
“If the economy can continue to grow we will see freight demand maxing out any excess capacity.
“If the ELD implementation and enforcement stay on track, the spring will bring capacity utilization over 100% and the freight transportation market will be scrambling to align loads and trucks.
“Carriers should be prepared for big changes, and big opportunities.”
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