To call it "the worst market in the next generation," the contract of carriage is a methodology for estimating the firm FTR Associates released its mid-month North American Commercial Truck and Trailer Outlook report flash this week, in a further weakening of demand of goods and equipment.
The level of economic activity has dramatically deteriorated in the first quarter of deep cuts already registered in the fourth quarter of 2008, the industry experienced a sharp decrease in the volume of freight transport is the same with very low levels of a recession in 1982.
Download fell 7 percent year over year in January after a decline of 10 percent in December. For years, you can download now expected to fall 7.3 percent in 2009, which is much worse than expected drop of 3.5 percent from nearly two months ago.
FTR expected annual tonnage cargo drops to -10.3 percent in the second quarter before the beginning of a slow rise to the increasingly stressful -6.6 percent in the fourth quarter of this year.
FTR requests amount of overcapacity in the market, "disturbing". The latest forecasts show utilization remains below 70 percent in the third quarter of this year. "Many drivers are losing money at those levels."
For Truckers that promises ever-increasing pressure on prices during the summer months. In combination with access to credit tightening that last number is translated into a very low production numbers of trucks. Already low level in January, which is the highest in the year.
The North American Class 8 demand weakens with the activity in January are running at an annual rate of just 93,500 pieces. FTR is a methodology for estimating production of North American shipments of Class 8 trucks of less than 125,000 in 2009.
Eric Stark, president of FTR, also shows how the negative thing, see: "The economic slowdown puts us on the way to -10 per cent of freight years. The worst market for generation."
The full report is available to participants at the beginning of March, an overview of some key indicators, FTR is a tracking software to understand the potential economic bottom has been reached.