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Phenomenal Trucking Boom Ends, Trucking Bust Starts

Scorpio

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#1
Phenomenal Trucking Boom Ends, Trucking Bust Starts
by Wolf Richter • Feb 6, 2019 • 55 Comments

So that U-turn was fast, even for the legendarily cyclical trucking business.
In January, orders for Class-8 trucks — the heavy trucks that haul trailers with goods of all kinds across the US — plunged by 58% from a year ago, to just 15,642 orders. It was the lowest number or orders since October 2016, toward the end of the “transportation recession” when Class-8 truck orders had plunged to the lowest levels since 2009, and truck and engine manufacturers responded with layoffs.
The chart below shows the percent change of Class-8 truck orders for each month compared to the same month a year earlier, which eliminates the effects of seasonality. The year-over-year plunges in December and January are on par with happened during the last transportation recession (data via transportation data provider FTR):



more here guys,

https://wolfstreet.com/2019/02/06/trucking-boom-turns-to-trucking-bust/
 

<SLV>

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#2
China trade war slowing imports?
 

Aurumag

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#3
Around these parts, Diesel fuel is between $3.50 and $4 per gallon; consistently more than premium gas.

I recall back in 2007, when Diesel hit $4, we had a similar trucking bust.

12 years later...

The economy is cyclical, yes?
 

newmisty

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#4
Around these parts, Diesel fuel is between $3.50 and $4 per gallon; consistently more than premium gas.

I recall back in 2007, when Diesel hit $4, we had a similar trucking bust.

12 years later...

The economy is cyclical, yes?
The US average for diesel is $2.52
 

newmisty

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Mujahideen

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#7
Just did another search and it's saying $2.96. What prices are you seeing?

View attachment 123954
I’ve been around the whole USA, I know it’s not $2.52 for semis. I would say closer to $3.

I also have not worked since November.
 

TAEZZAR

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#8

TAEZZAR

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#9
Chevron, 2 days ago, in L.A. near the 10 & 710 freeway intersection.

1549837891463.png
 

newmisty

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#10
Ya'll are getting raped. Low around here is $1.79
 

TAEZZAR

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#11
I’ve been around the whole USA, I know it’s not $2.52 for semis. I would say closer to $3.

I also have not worked since November.
Muj, what do you normally haul?
 

TAEZZAR

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newmisty

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TAEZZAR

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#15
I was close, but no horse shoe.
 

Mujahideen

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Muj, what do you normally haul?
Refrigerated so mostly meat and produce but sometimes pharmaceuticals and fedex mail and everything else.
 

Cigarlover

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#17

<SLV>

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#18
Maybe the driver shortage is contributing to lower truck sales. Why buy rigs if you can't find drivers?
 

gliddenralston

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#19
My brother just bought a new Chevy equinox diesel says he get 45 mpg, l get 32 mpg with my car, my gas is $2 gal, his costs a little over $3 a gal so what's the advantage? & Now he's complaining about the
awfull diesel smell he gets on his hands when filling, actually talking about trading it off now.
 
Last edited:

Cigarlover

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#21
Someone said was mart was looking for drivers 80k a year or something.. It was posted on here not long ago.
 

newmisty

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My brother just bought a new Chevy equinox diesel says he get 45 mpg, l get 32 mpg with my car, my gas is $2 gal, his costs a little over $3 a gal so what's the advantage? & Now he's complaining about the
awfull diesel smell he gets on his hands when filling, actually talking about trading it off now.
Diesel trucks are really only good for towing/hauling. For regular usage gas is the better choice. 45mpg is crazy though.
 

Mujahideen

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#23
They're not hiring?

You have your own tractor?
Oh they are hiring. Anyone with a CDL, no recent felonies, no failed drug tests and not too many accidents or tickets can get a job somewhere.

I simply choose to take winter off because winter sucks major ass and my company wouldn’t allow me to cherrypick my loads and avoid the mountains and snow.

I’m buying my own used truck and I’ll be able to pick my loads when I return start working again.
 

newmisty

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#24
I’m buying my own used truck and I’ll be able to pick my loads when I return start working again.
Sweet! That's exciting. What are you looking to get and what's your dream truck. If you don't wanna share I understand but I've always been enamored in the whole thing. Recently watched a vid where....I'll just retrieve it and post:

 

Mujahideen

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#25
Sweet! That's exciting. What are you looking to get and what's your dream truck. If you don't wanna share I understand but I've always been enamored in the whole thing. Recently watched a vid where....I'll just retrieve it and post:

For me there isn’t a such thing as a dream truck, I’m all about practicality when it comes to work; I’ll be getting a freightliner because they seem to have the most dealerships nation wide.


It will look like this.
 

newmisty

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#26
For me there isn’t a such thing as a dream truck, I’m all about practicality when it comes to work; I’ll be getting a freightliner because they seem to have the most dealerships nation wide.


It will look like this.
Sweet. What's something like that go for?
 

Mujahideen

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#27
$50k-80k used with 400k+ miles.
 

newmisty

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#28
50-80k used with 400k+ miles.
Shoot, that ain't bad. How many miles can one of those get before it's trouble? My neighbor two doors down parks his cab in the driveway a few times a year. I occasionally daydream about the life.
 

Mujahideen

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#29
I’ve heard you shouldn’t need an overhaul until after 600k miles, but the older trucks are more reliable because they didn’t have all the emissions nonsense and can probably get a million.
 

Mujahideen

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#30
$400 million trucking carrier files for bankruptcy, surprising employees and customers

Last year, the company ranked as the 17th largest LTL carrier and generated more than $400 million in revenue.

New England Motor Freight (NEMF) shocked the trucking industry on Monday afternoon, by announcing that they were abruptly filing for Chapter 11 bankruptcy and shutting down operations.

In a press release, the company blamed declining margins; caused by the rising cost of labor, regulations, and equipment, as the primary factor for the shut down.

NEMF president Thomas W. Connery wrote the following letter, which was distributed to employees on Monday.

February 11,2019

To The Workers of NEMF:

It is with a heavy heart that I am writing this letter to inform you of our intent to undertake a wind down and liquidation of our company, New England Motor Freight.

The costs of running an asset based trucking company have soared; with labor and benefits consuming an ever large portion of revenue. Add in the high cost of equipment, a severe industry shortage of drivers, ever increasing regulations and tolls, technology investments and the overall risk environment of our business.

After much discussion as well as consultation with outside financial advisors, it was concluded that it does not make sense to continue operations to support a business in which our margins continue to shrink, thereby resulting in significant financial losses.

No one is more devastated than our Chairman Myron “Mike” Shevell and his family, namely Nancy, Susan and Zachary. They built this company by walking hand in hand with thousands of dedicated workers like yourself. To all of our co-workers, many of whom are dear friends and to our thousands of customers, the family extends sincere gratitude and they share in our collective sorrow that we could not continue to operate this great enterprise.

Our cooperate offices and human resources department will provide further information today as we move forward with the wind down.

Gratefully yours,

Thomas W. Connery

President and Chief Operating Officer
C46EF4E9-4632-4DDD-B55D-9EE09241B751.jpeg


https://cdllife.com/2019/400-millio...4IcA2TfKstREimeWH6GGKBboH4-mp73RG_F8vlUgzYACw
 
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Mr Paradise

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#31
Those 3 days of -20 degree weather a couple weeks backed up the railyards so bad in Chicago they weren’t even taking inbound containers for days. Every track in the city had a train on it trying to get unloaded. Company was offering $300 a day bonuses to anyone wanting to work an extra shift to help uncluster the clusterfvck.

The yards are still packed but at least they’re allowing ingates. No winters off for old Mr Paradise.
 

edsl48

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#32
For me there isn’t a such thing as a dream truck, I’m all about practicality when it comes to work; I’ll be getting a freightliner because they seem to have the most dealerships nation wide.


It will look like this.
You are a rare person in the vehicle market; imagine someone buying a vehicle based upon practicability!
 

Area51

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#33
Shoot, that ain't bad. How many miles can one of those get before it's trouble? My neighbor two doors down parks his cab in the driveway a few times a year. I occasionally daydream about the life.
My father in law was a long haul trucker - - it's a tough life. Away from home for weeks at a time, missing out on holidays and family get togethers. Dealing with bad weather and jackasses on the road. Not to mention a diet of cigarettes and coffee with the occasional stop at a greasy spoon.
 

newmisty

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#34
My father in law was a long haul trucker - - it's a tough life. Away from home for weeks at a time, missing out on holidays and family get togethers. Dealing with bad weather and jackasses on the road. Not to mention a diet of cigarettes and coffee with the occasional stop at a greasy spoon.
And thus I remain a humble carpenter.
 

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