Truck Trends to Look Out For in 2023
Even if consumer shopping habits have returned to normal after the epidemic peaks, life in the trucking sector is never boring. The present million dollar question is “What will 2023 look like for the transportation industry?” While no one can predict what the next 12 months will bring, recent market movements have given us a glimpse of what to anticipate. The surplus of shipping containers and the recent decline in spot and contract pricing suggest that 2023 will be an exciting year. Take a look at these trucking trends for 2023.
Recovery in the Spot Rate
To round off 2022, spot prices have been dropping, getting closer to contract rate levels.” However, it’s unlikely that this trend will hold in 2023. Instead, spot rates are likely to stabilize around a contract rate floor because of rising expenses associated with maintenance, insurance, truck driver compensation, fuel prices, and the continuous lack of semi-trucks.
But, spot rates may go further lower in 2023 if inflation dampens consumer demand.
Discounting of Contract Rates
It is predicted that If spot rates decline by 30% in the fourth quarter, contract rates will also fall by 10% to 15% by the end of the first quarter of 2023.
Ocean Freight Volumes
Ocean container shipments fell in November and December, 2022 due to factors including Covid 19 lockdowns in China and falling consumer demand due to inflation.It is predicted that the trucking sector will feel the effects of the continued decline in maritime freight volumes in 2023.
Sailings to the ports of Los Angeles and Long Beach, the nation’s busiest container port complex, are being canceled at an incredible speed, so 2023 does not offer much hope either. There’s a perfect storm developing, and it’s going to delay any significant ocean action until the second half of 2023 at the earliest.
Prices of Diesel
It is forecasted that diesel prices will fall in 2023 after reaching record highs in the second half of 2022.
Diesel will likely be more costly than usual compared to the same time last year in January and February, but the rest of the year should see costs that are at least a dollar per gallon lower than what was paid in this crazy 2022.
Production of Class 8 trucks and trailers
With a gain of nearly 14% year-over-year, November 2022 was the second best month of the year for sales of Class 8 trucks and trailers in the United States. According to ACT Research’s recently published North American Commercial Vehicle Outlook, the demand for Class 8 equipment at the end of the year is expected to last into 2023.
Order backlogs have increased as a consequence, which is excellent news for OEMs and suppliers as it provides clear visibility into the first half of 2023.
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The trucking and shipping industry is undergoing significant changes, and it’s important for companies to stay ahead of the curve. From the rise of electric trucks to the increasing demand for eco-friendly transportation options, there are many truck trends to keep an eye on in 2023. By staying informed and investing in the latest technologies, trucking and shipping companies can continue to provide reliable and efficient shipping and trucking services to their clients. The trucking industry is constantly evolving, and companies that are able to adapt to these changes will be well positioned for success in the years to come.