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Here comes the 2016 oversize trucking season!

Here comes the 2016 oversize trucking season!

Finally, it looks like the 2016 heavy haul and oversize trucking season is beginning to start. While freight volumes are still on the low side we can tell by the consistency of loads being posted that the season will start very shortly. This won’t come soon enough for many companies as the 2015 oversize trucking season was very short lived with freight volumes extremely low. Economic indicators for 2016 look fair as the wind power industry continues forward with its expansion (although not as big as in previous years). That’s not to say it’s time to go trailer shopping just yet but it does look like we should have a decent year. While the heavy haul trucking industry certainly needs a boost, the oversize trucking industry needs it terribly bad with so many other companies dependent upon oversize freight in order to operate. Companies like the entire pilot car industry as well as specialized equipment manufacturers that cater to and service the industry. Over the past few decades we’ve learned that the pilot car industry can be very flexible as well as resilient and can recover from freight shortages pretty quickly considering. Whereas the heavy haul industry suffers much longer from a short term financial blow as equipment costs add so much more money to a companies operating costs and overhead.

Freightliner tractor for equipment transporting.

So what do we think about 2016 and freight volumes?

In general we think 2016 will be a difficult year for this area of the specialized trucking industry. While we’re not predicting record breaking highs in freight volumes it is our general thought that 2016 will bring some much needed relief as existing construction projects are already on the table. Companies that wish to have this work will need to brush up existing advertising as well as create new avenues.

Here are a few noteworthy items about 2016 freight volumes:

  • Existing wind energy jobs in WY, KS, OK and East TX will continue. However, quite a few projects are now being built in other parts of the world as well as sea. This hurts us as far a wind energy equipment shipping goes.
  • This is an election year and consumer spending is down so far. Another issue is the candidates. Nobody is real certain where the candidates will be as far as decision making once someone is elected. You know just as well as us these candidates will say anything to get elected but once in office have a whole new story. It’s hard for companies that create huge projects to forecast what their capabilities are for new construction projects. So not a lot is expected to hit the table for this year. This hurts us as well.
  • The US has too many heavy equipment surplus items that need to be sold. That heavy equipment will come up in the auctions this year so shipping from the auctions to the ports will be good in 2016 with the over all freight volume getting some help from this area.
  • The US government has a huge inventory of old surplus airplanes and parts in the Arizona desert. Much of this equipment will be sold this year which will also help the over all freight volumes.

It’s going to be another tough year folks. The companies that will earn the most money in 2016 are the ones that are advertising savy.

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