Two companies that track and analyze data for the trucking industry report sharp declines in Class 8 truck orders.
ACT Research said preliminary North America Class 8 net order data show the industry booked 10,200 units in July, down 21% from June and the lowest monthly order tally since February 2010.
FTR reports preliminary North American Class 8 orders for July were 9,800 units, falling below a 10,000-unit threshold that has not been breached since 2010. Despite most order boards being opened for 2020 build slots, carriers appear in no rush to grab production capacity, the FTR report said, adding that July orders were 24% below an already soft June with a -82% y/y comparison. Class 8 orders for the past 12 months have now fallen to a total of 288,000 units.
“Weak freight market and rate conditions across North America and a still-large Class 8 backlog continue to bedevil new Class 8 orders,” said Kenny Vieth, president and senior analyst at ACT Research. “Though, with OEMs opening their new model-year order books in June and July, order weakness is increasingly the story of an overcapacitized Class 8 fleet. Seasonal adjustment boosts July’s intake to 12,100 units, bringing the “worst since” comparison measurably closer, October 2016.”
“Fleets continue to take a wait and see approach to 2020 equipment. Potentially higher equipment costs, uncertain demand, and enough available capacity in the market are keeping order activity at bay,” said Jonathan Starks, FTR chief intelligence officer.
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