Comparatively, 2018 and 2019 have quite a rift between them, for the transport industry. In
2018, motor carriers, logistics firms, and freight shippers were all kept in good business by a few
certain factors, just as the consumers: the factors included; big expenditure on e-commerce, a
low corporate tax rate and, the abundance of quite affordable fuel. When most carriers rushed in
to capitalize on the opportunity, they were left this year with lots of capacity yet with very little
loads to be transported, and equally with lots of other challenges.

Bob Costello, chief Economist ATA, confirmed that the trade feud between the US and China
was also at the helm of the decline in the freight industry. Costello also fired shots of blame at
the declining manufacturing industry in the US. The combination of the factors led to closure and
bankruptcy of 795 trucking companies by 30 th September, double the number in 2018, according
to Broughton Capital. The biggest company to fall casualty was Celadon Group based in
Indianapolis.

The problems facing the industry did not have quite an immediate impact on truck sales. The
thriving of the transport industry in 2018 made the purchases of class 8 trucks to remain high
even in 2019. The retail sales averaged at 16,000 trucks per month. As the year went by, truckers
continued to take on more and more capacity despite no sign of growth and more of the
uncertainties surrounding the economy.

Contrarily, in North America, the orders started quite slowly. Orders dropped to 15,800
compared to 48,700 in 2018. By July, the worst record of the lowest number of orders since 2010
was registered, leading to loss of jobs and reduced build rates, and hitting the lowest ever levels
by November. Cummins Inc. announced the imminent layoff of 2000 salaried employees as a result of the decline in the demand for the trucks. The only positive out of the mix was the fact that the average weight of cargo transported rose by 3.9%, compared to 2018. The immediate sales and exchanges faced a tumble.

Dean Foreman acknowledged that the refining capacity of the US kept the fuel prices at a stable
level. The mandate that needs ships to use clean fuel is the only worry to affect the fuel prices.
Tom Kloza reiterated that it’s just a matter of time as there has been no effect so far. The factors
kept tuckers in worries despite their big-spending to keep themselves in check for long term
goals, according to the ATA CEO, Chris Connor. More demand comes from online consumers,
some companies such as Schneider, failed to incorporate the same into their business to enhance
their deliveries.

Daniel Wash confirmed that there is notable growth in the online business, with virtual purchases
and payments at XPO Logistics. John Smith, TT Smith, stated that the economy has quickly
grown in the past few years, along with online presence growth. He finished by saying that he
feels like they should venture more into the business.