An article published by the Wall Street Journal on September 1, 2019, examined how the surge in Class 5-8 truck production in 2018 affected freight markets in 2019. At the time, the industry was experiencing a boom, but it quickly led to an oversupply of trucks, which put downward pressure on freight rates—some as much as 20%. The imbalance between supply and demand was clear: there were simply more trucks than available freight. This created a buyer’s market for shippers, while carriers struggled with lower margins and tighter profit spreads. Since that article came out in 2019, the situation has completely flipped. By late 2019, North American truck manufacturers saw a drop in demand, and ACT Research was already forecasting a further decline in 2020. Then, the pandemic hit—and everything came to a standstill. As global shutdowns took hold, supply chain disruptions began to ripple through every sector, including commercial vehicle manufacturing. From semiconductor shortages to chassis delays, the effects of the March 2020 lockdowns are still being felt today, even as we approach late 2021. Freight rates and volumes are directly tied to the balance of supply and demand. The question is simple: How much freight needs to be moved, and how many trucks are actually available to haul it? The flood of Class 8 trucks built in 2018 initially created a surplus, leading to lower rates and a market favoring shippers. But now, the situation has reversed. We're seeing "stronger for longer" rates that benefit carriers, driven by a shortage of new trucks due to ongoing supply chain issues. Despite high demand, the production of new Class 8 tractors is being held back by parts shortages. OEMs are left with partially completed vehicles sitting in their parking lots, waiting for components to finish the build and deliver to customers. This current market dynamic, though exaggerated, reflects the fundamental power shift between supply and demand—especially when it comes to Class 8 tractors and how they influence spot and contract rates. That’s why ACT’s Freight Forecast was developed—to provide real-time visibility into the transportation market. It helps shippers, carriers, logistics providers, brokers, and others in the supply chain make smarter decisions based on accurate data. For over 36 years, ACT Research has been collecting and analyzing data on Class 5-8 truck production and Class 3-8 used trucks. With this information, they’ve built comprehensive databases and population models, including mortality curves, to track the size of the U.S. fleet and its future growth. By combining new production data with used truck trends, ACT Research gains a unique perspective on the full supply of Class 8 tractors currently on the road—and how many more will be added in the next year. Imagine what insights like these could do for your business planning. Hot Rolled Steel Pipe,Hot Rolled Square Tube,Hot Rolled Pipe,Hot Rolled Tube TIANJIN JIAYI STEEL CO.LTD , https://www.jiayisteel.com