{"id":3937,"date":"2019-12-26T16:36:28","date_gmt":"2019-12-26T15:36:28","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=3937"},"modified":"2019-12-26T16:36:28","modified_gmt":"2019-12-26T15:36:28","slug":"3937","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2019\/12\/26\/3937\/","title":{"rendered":"New Year to Bring Challenges for Trucking Industry"},"content":{"rendered":"

New Year to Bring Challenges for Trucking Industry<\/h3>\n

The new year will be a tough one for the North American trucking industry, according to\u00a0ACT Research. In this exclusive interview with Modern Tire Dealer magazine, Steve Tam, ACT\u2019s vice president of research, explains why. The good news? The situation is \u201cnowhere near as dire\u201d as what the industry experienced nearly 10 years ago, during the depth of The Great Recession, according to Tam.<\/p>\n

MTD: 2018 was, by most accounts, a strong year for trucking in terms of tonnage, freight rates, new truck orders and other metrics. What is the current state of the North American commercial trucking industry as we near the end of 2019?<\/strong><\/p>\n

Tam:<\/strong>\u00a0Comparing 2019 to 2018, the industry saw declines in most areas. While the numerous metrics vary, freight volumes were down year-over-year by an average of 3% to 4% each month in 2019. The decline in freight is largely the result of lower manufacturing activity. Despite the fact that demand was lower, truckers continued to add capacity to the fleet. Too many trucks and not enough freight led to an environment of freight rate erosion. Depending on which sources and data one follows, the contract freight decline was also in the neighborhood of 3% to 4%, with spot rates falling in excess of 10%.<\/p>\n

Combined with lower demand and profits test by lower rates, truckers placed considerably fewer orders in 2019. For perspective, more than 400,000 orders were placed in 2018, twice the number needed to keep up with replacement. Through November 2019, OEMs have taken orders for fewer than 135,000 trucks.<\/p>\n

MTD: Right now, there are more tractors in the U.S. market than what is needed to haul freight. How will this impact new truck orders next year? Will we eventually see a situation similar to what occurred nearly 10 years ago, when fleets parked \u2013 and in some cases, began to cannibalize \u2013 their equipment?<\/strong><\/p>\n

Tam:<\/strong>\u00a0The industry is clearly staring excess capacity in the face and is just now taking the first step in the right direction to deal with the situation. Orders are expected to increase moderately as 2020 progresses. But probably not more than a few thousand units per month over 2019\u2019s average monthly intake will be required to meet the forecasted demand of 190,000 units. Some parking of trucks and cannibalization of parts may take place. It is important to keep in perspective that the excess capacity is estimated to be in the low to mid-single digit range.<\/p>\n

MTD: What will the trucking market look like during the first half of 2020? Where do you see the North American trucking industry six months from now?<\/strong><\/p>\n

TAM:<\/strong>\u00a02020 is going to be a challenging year for the trucking industry. On the equipment manufacturers\u2019 side, output will likely fall throughout the year as truckers work hard to rationalize capacity.<\/p>\n

\u201cThe pace of the recovery will be determined by this, in conjunction with dynamics in the freight market,” he says. “Currently, they are expected to parallel what we have laid out for the truck industry, both in terms of magnitude, as well as timing.\u201d<\/p>\n

by Mike Manges<\/p>\n

Source: https:\/\/www.truckinginfo.com<\/a><\/p>\n

FLEET MANAGEMENT AUDIT<\/h3>\n

Fleet management is the use of a set of vehicles in order to provide services to a third-party, or to perform a task for our organization, in the most efficient and productive manner with a determined level of service and cost.<\/p>\n

Fleet management activities are shown in the following graph 1:<\/p>\n

\"fleet<\/p>\n

Graph 1: fleet management activities<\/p>\n

The proposal audit analyses and assesses all fleet management activities shown in the graph 1, and its main goals are:<\/p>\n