It is getting harder to sell older handling equipment to some parts of the US, according to Port International Equipment''s chief executive Terry Troutman.
He cites California, where new environmental legislation has effectively raised the bar in terms of what emissions are now acceptable. Some ports on the East Coast have brought in their own standards, aimed at making previously acceptable diesel-powered vehicles no longer compliant.
Understandably, California has proved a good source of second-hand equipment in recent years, but the need to drain machines of fluids and remove hazardous materials prior to moving them out of the state has also added to the price tag.
“It will get harder to sell older diesel equipment in the US. We will therefore have to look further afield for markets,” he says, adding that much equipment is now having to be sold to operators in Latin America or the Far East who have little surplus cash available for capital spend and therefore have no option other than to buy second-hand.
“But selling to these markets also implies more expensive transport costs, which in turns means we will be forced to pay less to cover our own costs, ultimately resulting in the value of second hand equipment falling. Already, in some cases, transport costs are actually higher than the nominal value of the equipment being sold,” he says.
At Tito Lifttrucks, sales of second-hand equipment are heavily focussed on African operators, who account for 90% of all purchases. Managing director, Roy Tito, therefore says that environmental considerations have not yet had a major impact on business.
“Usually, in Africa, prospective customers are interested in two main factors when buying second hand: the price and the general condition of the machine. Environmental factors are not usually a consideration,” he says.