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E-Commerce Creating "Golden Era" for Trucking Industry, Notes Augusto Beato

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Ice Break Shipping's Augusto Beato welcomed news that more business awaits trucking companies partly due to the delivery demands of e-commerce.

"The industry is reaping huge profits after a year of robust freight demand that drove load prices up by double digits," said Beato, who is also the CEO of Portland SEO. "More business is coming as evidenced by the record orders for truck trailers."

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Beato, who described the current period as a "golden era" for trucking business based his observation on news that shippers have to adopt relay-style trucking to speed freight movement. Consequently, delivery demands of e-commerce are contributing to record orders for truck trailers.

New trailer orders in September and October set all-time records. Orders were up 55 percent to 350,000 in the first 10 months of the year over the same period in 2017. Replacement orders for aging vans average 230,000 to 250,000 units a year. The rest are in response to new business and threats of higher import tariffs and interest rates, according to industry experts.

The growth in manufacturing as part of an expanding U.S economy is keeping freight orders for construction and building materials and other goods at high levels.

“We’re not in a position to pursue any new business,” said Rob Fortney, director of the dealer and international sales for Great Dane, the world’s largest trailer builder, whose nine U.S. plants are running at or near 100 percent capacity. “We’re full through the second quarter of 2019. We just opened the order book for the third quarter.”

With few exceptions, a new trailer ordered today likely would be delivered next July, Fortney said.

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