In 2017, we saw many new investments in U.S. manufacturing which provided a much-needed boost for commercial trucking. Many believe that the commercial trucking industry will continue to grow in 2018 which is great news for commercial fleet leasing companies, but with new regulations and unexpected competition, carriers must find ways to adapt. These are the trends to watch for in 2018.
Watch out for Canadian Carriers
Canadian carriers still rely on American companies as they move their shipments over the border in order to avoid government scrutiny. To expand their market share, however, many Canadian companies are starting to develop partnerships or establish entirely new U.S. entities for more control. Experts think that this could result in more liability as they try to uphold U.S. safety regulations.
The Last Mile Becomes More Important
The distance it takes to deliver products and goods from a shipping hub to residential neighborhoods and businesses is known as “the last mile.” With the continued rise of e-commerce, many carriers will want to tap into this market with new investments in smaller vehicles for their fleets.
Limits of Hours of Service
Driver safety is a major concern for not only carriers but also the U.S. government as well. Many cite that over exhausted drivers are the cause of many accidents, and in efforts to help limit this, in 2018, commercial trucking companies will be required to install a device known as the Electronic Logging Device (ELD).
Under these rules, drivers will no longer be allowed to spend more than 50 hours behind the wheel during the week and must take two full days off to rest up. The ELD will track the time drivers spend in a truck although many critics are apprehensive because of the added costs to install the devices in an entire fleet of vehicles and say that the costs will ultimately be paid by the consumer.
Other Technologies in 2018
In addition to the ELD, carriers must brace for additional regulations such as fuel efficiency tracking software and refrigeration in trailers. To avoid paying hefty fines, fleet managers must do their due diligence that each vehicle in their fleet meets the latest safety and regulatory standards.
Financial Data from 2017
Even with all of these new requirements and regulations, many still anticipate the commercial trucking industry to see significant growth in 2018. This is a continuing trend in the upward direction with research firm ACT noting a 37-month high in truck orders in December 2017.
These are the most popular trucks among buyers in 2017 according to research from EDA.
EQUIPMENT TYPE UNITS BUYERS
Trailers also saw an increase in demand. In another report by FTR, orders for trailers in December 2017 reached a 37-month high of 47,000, beating out the previous record back in October 2014.