According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, the list of things to like from current economic, freight and commercial vehicle demand perspectives is long.
“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,” Kenny Vieth, president and senior analyst for ACT Research, said. “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.
“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.
“Our song remains the same: The current business environment for heavy-duty trucks is about as good as any we have seen in 35 years of monitoring heavy-duty market conditions at ACT Research.”
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