TRUCKING Cos. news * USA - Owing more than the trucks are worth
* New York - A glut of used heavy-duty trucks
--- A glut of used big rigs is weighing down trucking companies already mired in a prolonged slump in the freight market... Many fleets bought scores of new trucks when transportation demand was booming a few years ago. Then U.S. manufacturing activity flagged and import growth slowed as retailers rang up disappointing sales. Freight volumes started stalling out in late 2015, leaving too many trucks competing for cargo... Large long-haul trucking companies typically run a truck for three to five years, then trade it before the warranty expires. Repair and maintenance costs tend to skyrocket after about 500,000 miles... Now, trucking companies are trying to trade in vehicles following one of the steepest plunges in used-truck prices since the recession. Some carriers are “upside down” on trucks in their fleets, meaning they owe more on a vehicle than it is worth...
(PHOTO: TED S. WARREN/ASSOCIATED PRESS - Big rigs on the highway in August 2016. A market glut of used heavy-duty trucks is weighing heavily on long haul carriers, many of whom have had to write down the value of vehicles that in some cases are their main assets) -- NY, USA - The WSJ, by Jennifer Smith - May 12, 2017
Labels: trucking industry news USA