In what could be a bit of surprising economic news, heavy-duty truck repossessions were down in 2008 according to Nassau Asset Management.
Truck repossessions processed by Nassau declined in 2008 from a high point in 2007, but the 2008 totals represented a 50 percent increase from 2006 figures.
Repossession figures for trucks and tractor-trailers declined by 25 percent in 2008, compared with the previous year. The initial glut of trucks in the marketplace following the change in engines in 2006-2007 has now been absorbed, according to the Nassau press release.
However, the trucking industry did downsize significantly in 2008. Record levels of trucks were parked according to reports by long-time trucking analyst Donald Broughton, who is now with Avondale Partners. As many larger companies downsized their operations, they opted to sell used trucks overseas rather than put them out on the relatively stagnant used-truck market as credit tightened throughout the end of 2008.
In the latest report from the U.S. Department of Transportation, its freight transportation services index (TSI) for October 2008 rose by 0.6 percent from September 2008, but the measure of month-to-month changes in the output of services provided by for-hire transportation industries declined 1.3 percent compared with October 2007’s total.