Rouse Services, the industry leader in equipment market pricing data and analytics, has just released their Q3 2022 commentary on the transportation industry. This latest report gives you an inside look at pricing and volume patterns for truck tractors and trailers, as well as notable developments for the transportation industry.
The following are excerpts from Rouse’s Q3 Transportation Industry Commentary. Email Rouse Services to request your copy of the report today!
Concerns of future demand top of mind
“Spot rates and used truck tractor values continued to decline in Q3. Carriers are reporting strong revenue figures,but offered cautious guidance regarding deteriorating demand conditions during what would typically be the peak season in early Q4. These concerns of future demand and bloated inventory levels have been echoed by major retailers such a Walmart, Target, Nike, and Amazon in recent earnings releases. Volumes of goods arriving at ports and container shipping rates seem to indicate that these trends will persist in the short term.
The supply of used truck tractors sold remains well below historical averages in both the auction and retail sale channels. A continuation of deteriorating demand conditions and an increase in the supply of used trucks offered for sale could create further downward pressure on used truck tractor values.”
Used truck tractor value trend
“Truck Tractor values trended down throughout 2019 and through the front half of 2020. As demand conditions improved in the back half of 2020 driven by a shift in consumer spending into physical goods, values began to rise- first at auction (FLV) and followed by retail (FMV).
As semi-conductor shortages began to impact the supply of new truck tractors available in 2021, this further increased the value of used truck tractors.
In early 2022 as demand conditions worsened and consumer spending shifted back towards services, used truck values began to decline- first at auction in late Q1 and followed by retail in late Q2. These declines in values observed recently do not appear to be driven by the supply side as used truck tractor volumes remain meaningfully below historical averages (see discussion and charts above). While values have come down notably from their peak earlier this year, they still sit very high relative to pre-pandemic levels.”
Email Rouse Services to request your copy of the report today!