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Tag Archives: trucking

First the Freight Recession, Now Covid-19: Trucking & Rail Freight Collapses. Is This the Bottom?

YRC, one of the largest less-than-truckload carriers, wheezes under the strain. By Wolf Richter for WOLF STREET. The hope is that April was the bottom, that volumes can’t fall further, that factories and retailers will gradually open and that consumers and businesses will buy these goods, and that trucks and railroads will roll again. That’s the hope. It might take a long time to get back on track, but at least the hope is that the plunge in the demand for transportation services...

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From Panic-Buying to Lockdowns of Eateries & Manufacturing: Truckers, Railroads Face Supply Chain Turmoil, Spikes & Plunges

“There has been a clear divide between winners and losers.” By Wolf Richter for WOLF STREET. Panic buying in late February and March was followed by a sudden shift in consumption in mid-March away from restaurants, schools, college campuses, office buildings, other work locations to supermarkets, warehouse clubs, and ecommerce. For weeks, brick-and-mortar retail supply chains failed to keep up, and bare shelves in some product categories became a common sight. But the supply chains at...

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Trucking Skids Off the Road Entirely

“Only good news is that the number was still positive despite the high number of cancellations.” By Wolf Richter for WOLF STREET. Orders for heavy trucks in March collapsed by 52% from the already dreadfully low levels a year ago to 7,400 trucks, the lowest since 2010, driven by cancellations of existing orders “due to the sharp and sudden downturn in economic conditions,” according to preliminary estimates by FTR Transportation Intelligence. And so COVID-19 spirals through the...

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“COVID-19 Added to this Uncertainty:” Orders & Sales of Heavy Trucks & Medium-Duty Trucks Plunge in the US

But for its still pre-coronavirus quarter, Navistar reported that its Truck revenues collapsed by 31%. By Wolf Richter for WOLF STREET. So Navistar International reported Q1 results this morning. It swung to a net loss of $36 million in the quarter ended January 31, as total revenues plunged 24.5%, to $1.84 billion. Net sales in its Truck segment plunged 31% to $1.24 billion. And new orders for trucks have essentially collapsed, which bodes ill for revenues going forward. These orders...

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US Freight Shipments Plunge at Fastest Rate since 2009, Hit 2011 Level: This is Getting Surprisingly Ugly

Why is this happening? By Wolf Richter for WOLF STREET. Shipment volume in the US by truck, rail, air, and barge plunged 7.9% in December 2019 compared to a year earlier, according to the Cass Freight Index for Shipments. It was the 13th month in a row of year-over-year declines, and the steepest year-over-year decline since November 2009, during the Financial Crisis: The Cass Freight Index tracks shipment volume of consumer goods and industrial products and supplies by all modes of...

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Truckers Take “Wait and See Approach.” Equipment Orders, After Having Plunged, Stall at Low Levels

Amid a shakeout among trucking companies & production cuts and layoffs among truck makers. By Wolf Richter for WOLF STREET. Orders for heavy trucks in December came in at 20,000. In the fourth quarter, they averaged just under 20,000. For the past 12 months, there were 179,000 orders for Class 8 trucks, down 64% from 497,000 orders in 2018, and the lowest annual total since 2010, according to FTR Transportation Intelligence. “Fleets are being very cautious in this environment, only...

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Turmoil in the Heavy-Truck Market as Seen by a Truck Dealer

“This, I think, was the Big One, where the fleet valuations fell out and took this company out.” By Wolf Richter for WOLF STREET. “On our lots, there are no lookers for used sleepers, and we will sell new sleepers at a loss to clear them out, and new orders for sleepers have come to a stop,” a heavy truck dealer who owns two stores with several franchises told me. The truck dealer was talking about the turmoil in the heavy-truck business, where orders for new Class-8 trucks have...

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Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

Creditors trying to repossess trucks over the weekend. Thousands of drivers on the road, some stranded. Employees left in the dark. Shares plunge 93% this morning from nearly nothing to practically nothing. By Wolf Richter for WOLF STREET. Celadon Group, one of the larger full-truckload operators in the US with about 3,000 drivers and about 2,700 tractors, said today – confirming days of rumors – that it filed for Chapter 11 bankruptcy and is ceasing operations. This is the largest...

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Trucking “Thrives on Stability, But We’re Now on a Rocky Road”

Orders for heavy trucks re-plunged, after false bounce off the bottom. This was not supposed to happen. November was supposed to be the second month in what would be the upturn from the historic collapse in 2019 for orders of heavy trucks. Orders in 2019 had plunged by as much as 80% from a year earlier. That collapse in orders followed a historic boom in orders in 2018. But in October, orders had bounced, and though still down by 48% from a year earlier, it was a big move. So November...

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US Freight Shipments Skid Below 2014 Level, Hit by the Slowdown in Industrial, Manufacturing & Construction

Efforts to frontrun tariffs was part of it. But now, there’s more to it. Freight shipments have declined on a year-over-year basis all year. Until today, the declines were from the extraordinary shipment boom that started in late 2017 and lasted into late 2018. It had been stimulated by efforts to frontrun the tariffs, where companies over-ordered to get the merchandise and equipment before the tariffs would hit. With today’s data, this image has changed for the worse. Freight shipment...

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