Truck tires are more than “where the rubber meets the road.” Understanding truck tire sizes, tire load ratings, why ply no longer matters, and more is important for today’s fleet managers.
Many factors continue to exert upward pressure on fleet maintenance costs (with longer service lives as the primary driver).
Most of the subject matter experts that we spoke to expect an increase in tire prices, although predicting future tire costs is difficult due to variables that influence tire pricing.
Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.
Upward cost pressures on replacement tires have emerged in 2018, due to higher cost for the commodities used to manufacture tires and the trend to larger diameter 17- to 18-inch wheels, which are more expensive to replace.
Michelin North America Inc. will increase prices on its commercial tires on Dec. 1 by as much as 8%.
Higher commodity prices are putting upward pressure on fleet prices for replacement tires. National accounts are no longer as willing to absorb the majority of price increases, which are between 3%-8% on select tire lines.
For the past four years, tire costs have been stable. But, new cost pressures have emerged in 2017, due to higher prices for the commodities used to manufacture tires and the trend to larger diameter, more expensive tires.
Calendar-year 2015 marks the third consecutive year that fleet operating costs have remained stable compared to the past three years, primarily due to the continuing softness in gasoline and diesel prices. Replacement tires, the second highest operating cost, were stable due to the ongoing softness in commodity prices, primarily rubber and oil, while increased maintenance intervals contributed to lower maintenance costs for fleets. The forecast is more of the same for CY-2016.
One factor driving the deluge of Chinese exports of replacement truck tires to the U.S. is China's immense tire production overcapacity. In 2015, China manufactured 120 million tires, with an overcapacity rate of almost 25 percent. The influx of Chinese truck tires is also having a detrimental effect on the tire retreading industry, because many of these “bargain” tires have only one life because they cannot be retreaded.
media brand
The secure and easy all-access connection to your content.
Bookmarked content can then be accessed anytime on all of your logged in devices!
Already a member? Log In
