An article published by the Wall Street Journal on September 1, 2019, explored how the surge in Class 5-8 truck production in 2018 affected freight demand and pricing in 2019. Freight rates dropped significantly—by as much as 20%—due to a surplus of trucks competing for limited cargo. This imbalance created a market where shippers had the upper hand, and carriers were forced to accept lower rates just to stay operational. Since that article was published, the situation has completely reversed. By late 2019, North American truck manufacturers began experiencing a drop in demand, and ACT Research predicted further declines in 2020. Then came the pandemic, and the entire industry came to a standstill. The global shutdowns triggered a cascade of supply chain disruptions that continue to affect every sector, including commercial vehicle manufacturing. From semiconductor shortages to delays in chassis production, the impact of the March 2020 lockdowns is still being felt well into late 2021. Freight rates and volumes are always shaped by the balance between supply and demand. The question remains: How much freight needs to be moved, and how many trucks are available to move it? The flood of trucks ordered and built in 2018 led to an oversupply in the market. With more trucks than available freight, this created downward pressure on rates, favoring shippers over carriers. Today, the market looks very different. Rates are holding strong, and carriers are benefiting from a tighter supply. The reason? Supply chain bottlenecks are slowing down the production of new Class 8 tractors. Demand is high, and it's clear across all major indicators that the market is ready for growth—but the parts just aren't there yet. As a result, original equipment manufacturers (OEMs) are sitting on lots filled with red-tagged vehicles—partially completed units waiting for components to finalize and deliver to customers. This current situation, while extreme, reflects the core forces of supply and demand, particularly how Class 8 tractors influence both spot and contract rates. Understanding these shifts is exactly why ACT’s Freight Forecast was developed—to provide transparency and insight to shippers, carriers, logistics providers, brokers, and everyone involved in the supply chain. For over three decades, ACT Research has been collecting data on Class 5-8 truck production and Class 3-8 used trucks. Using this data, they’ve built comprehensive databases and population models, including mortality curves, to track the size of the U.S. fleet. By combining new production data with used truck information, ACT Research gains a unique perspective on the total supply of Class 8 tractors on the road—and how many more will be added in the next year. Imagine how valuable this kind of insight could be for your business planning: With the right data, you can make smarter decisions, anticipate market changes, and stay ahead of the curve in an ever-evolving industry. Hot-dip Galvanized Round Steel Hot-Dip Galvanized Round Steel,Hot Dipped Galvanized Steel Pipe,Hot Dipped Galvanized Rigid Steel Conduit,Hot-Dip Galvanized TIANJIN JIAYI STEEL CO.LTD , https://www.jiayisteel.com