COLUMBUS, Ind. – Preliminary used Class 8 retail volumes fell 10% month-over-month and were 40% lower compared to May of 2021, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research.
Other data released in ACT’s preliminary report included month-over-month comparisons for May 2022, which showed that average retail price and average age both were virtually unchanged, at -1% and +1%, respectively, while average miles were 2% lower m/m. Compared to May of 2021, the average retail price was 66% higher, with average miles and age greater by 4% and 7%, respectively.
“Unfortunately, long-awaited reports of loosening inventories come at exactly the wrong time in the cycle,” Vice President of ACT Research Steve Tam said.
“At the same time, this is part of the phenomenon that defines an inflection point of the cycle. Freight growth is slowing, soon to begin shrinking. Yet, since profitability tends to lag the cycle, truckers continue to make money and invest in equipment, ultimately over-capacitizing the market. As a direct result, the industry is already seeing significant downward pressure on freight rates, which will result in decreased truck demand, and ultimately, lower truck prices.”
Tam said overall pricing for Class 8 trucks was resilient in the face of all the challenges with which it is currently confronted.
“Steeper declines are already impacting segments of the market and expected to broaden,” Tam said. “This is the beginning of the end of the cycle, which promises to be every bit as exciting on the way down as it was on the way up.”
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.