Even if you’re belted in, you may still be experiencing whiplash from the slew of opinions surrounding the transportation industry.
With a whirlwind of fuel price fluctuations, changes in asset values, and post COVID-19 conditions dictating the market, it can be intimidating to consider updating your fleet.
That’s why we’ve compiled some of the most significant market considerations to help you stay informed before taking on more trucks.
Here are some of the most impactful items to consider:
1. Truck auction prices are low, and plummeting.
As the trucking market saturated with new haulers looking to meet the high demand, more assets were obtained—but not all could take the heat of a tight market. Consequently, more would-be business owners are selling their rigs in a low-demand market.
If you’re looking to update your fleet, now’s a great time—but make sure you’re hitting the auction. Retail prices are projected to remain high throughout the year.
2. Fuel will stay high.
Before pulling the trigger on updating your fleet, be sure to calculate your anticipated overhead with rising fuel costs.
Industry experts estimate that fuel will climb all year long strictly out of current market conditions, not to mention any unforeseen conditions caused by the global shortage.
Though the rocket in fuel prices possesses a significant challenge to rising truckers, costs can be mitigated through a variety of techniques.
3. Regardless, the future for the industry as a whole looks bright.
Despite some difficult headwinds, the grit of the transportation industry continues to show. With restocking continuing post-pandemic, freight tonnage is expected to grow by 24% over 2022.
In addition, 55% of truckers reported an increase in their hauled loads from quarter to quarter, often paddling upstream against a sea of low spot rates. As we’ve mentioned before, don’t let low spot rates deter you though, you’ll be better off seizing the opportunities of a rising market.
Verdict: Market conditions are tough, but they are not impossible. By timing your purchases strategically, mitigating costs where possible, and riding the natural current of the market, now can a great time to update your fleet.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.