ACT research says prices for used Class 8 trucks are up 4 percent in October

By Jeff Berman, Group News Editor
November 29, 2010 - LM Editorial

Data from ACT Research, a provider of data and analysis for trucks and other commercial vehicles, indicates that the average retail sales price of Class 8 used vehicles sold in October was up 4 percent from September.

September retail prices were up 3 percent from August, according to ACT data.

In the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, ACT also reported that the average price for the units sold increased 4 percent month-over-month as buyers focused on the limited supply of low mileage vehicles available, according to company officials.

“Tighter supplies of equipment of all sizes continue to be a boon for selling prices,” said Steve Tam, vice president-commercial vehicle sector with ACT, in a statement. “With the focus on late-model equipment, the average miles for Class 8 units sold were down 13 percent month-over-month and 14 percent compared to October of 2009,” added Tam.

In a recent interview with LM, Steve Tam, vice president-commercial sector at ACT, said that as available truck capacity continues to tighten on a sequential basis, freight hauling capacity is modeled by ACT as what he described as an active population, which examines the current state of freight hauling capacity.

“We think that pretty much all of the vehicles that are in operation on the Class 8 side hit a ‘balance point’ in the middle of the second quarter and beginning of the third quarter,” said Tam. “We don’t think there is much, if any, excess freight hauling capacity…out there right now.”

Even with a lack of capacity, Tam said that does not mean the trucking industry is using 100 percent of its available fleet. He added that 100 percent capacity utilization is not an ideal situation for shippers and carriers, as trucks need maintenance and re-positioning.
According to ACT estimates, total active Class 8 utilization at the moment is in the low-to-mid 90 percent range, which is the ideal amount for full utilization on an ongoing basis. It the economy was doing better, Tam said this rate could be bumped up a few percentage points.



About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

About the Author

Jeff Berman, News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA