GE Capital analysts compiled a list of predicted industry trends for 2015, including projected outlooks for Freight, Equipment, and Rates and Capacity. Carriers benefited from an ideal supply and demand environment in the beginning of 2015 along with tight capacity, and low fuel prices. Here are the predictions for the rest of the year:
One challenge the trucking industry will face is a record high turnover in the long-haul market. Also, regulatory mandates have caused operating inefficiencies and carriers are feeling the pressure to improve pay and benefits for drivers.
Freight outlook, however, is positive due to higher sales in the retail market. The greater demand for goods drives tonnage and signifies a healthy supply for the trucking economy. New construction will also drive higher freights as roads become more accessible.
GE’s outlook for equipment sales and production is that it will slow in comparison to 2014. With many new trucks purchased in the last year, analysts do not predict the demand for new equipment to be so high.
The freight rate projection is moderate this year as many new trucks were ordered last year to relieve a strain in capacity.
Still, harsh regulations, insurance and liability fees, and the ongoing driver shortage seem to hinder the process of getting enough drivers to meet the current demand.
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