With the U.S. economy slowly rising, trucking companies are displaying signs of renewed optimism.
Leading companies such as Old Dominion Freight Line Inc. and Knight Transportation Inc. are trying to keep up with the freight demand. Such tendency seems to be valid industrywide, because the sales of freight trucks are rapidly rising.
In fact, statistics show that the number of sales are at eight-year high, boosting trucking stocks as well as securing better pay for drivers, who have been in demand for a long while.
The newly arisen optimism is behind truckers’ confidence to expand fleets and look into buying new tractors whose average near-record age now is 9.6 years.
According to 94 economists surveyed by Bloomberg, the gross domestic product (GDP) is predicted to expand 2.5 % this year, despite the fact that U.S. economy came to a standstill in the first quarter. Hopes are that in 2015, the GDP will increase to a 3.1 % rate.
Read the full story at Bloomberg.