All of a sudden, it seems, used trucks are losing value. It could be because some truckers are finding the trucking business hard to make a living in right now. Spot rates for cargo have fallen recently. Sometimes they are even below contract rates for recently negotiated contracts.
I think the recession is starting to hit trucking. Inventories of many firms are fully stocked, and if business sales slows these firms won’t need to replenish so fast. Hence less trucking needed.
Some of the hot spots for truckers, like the West Coast ports, are starting to slow down also, so less drayage or off-port hauling is needed. There are just fewer loads available.
It’s a good sign for supply chain congestion, but not so good for those who recently entered the business.
So truckers are selling their rigs more frequently.
It’s not an easy business to make a buck in.
Alan Adler Thursday, June 16, 2022Used truck auction prices plunge as freight market cools – FreightWaves