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Rail News Home Rail Industry Trends

2/25/2010



Rail News: Rail Industry Trends

Class 8 truck demand to remain flat for rest of year, FTR says


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Heavy truck demand is projected to register only marginal gains this year “even as signs multiply that the demand for truck freight is beginning to improve,” according to FTR Associates’ “North American Commercial Truck and Trailer Outlook Report” for February.

“While freight is turning positive and expected GDP growth for 2010 is edging higher, the combination of excess capacity and the impact of the EPA mandate will hold Class 8 equipment demand essentially flat this year compared with 2009,” the report states.

Although “many would like to see” a large upsurge in Class 8 demand this year because of the improving economy, “our analysis continues to see a disconnect between the 2010 freight and equipment production outlooks,” said FTR President Eric Starks in a prepared statement. “We continue to caution against optimism, especially in the first half of the year, because of the huge overhang in excess, idle equipment.”

Meanwhile, the 2010 outlook for trailers is improving and production levels are stabilizing, the report states.