FTR: Class 8 orders remain ‘depressed’

Net orders for North American Class 8 trucks in June fell 8 percent from May and 34 percent compared with June 2015, according to preliminary data from freight forecaster FTR Transportation Intelligence.    Net orders for North American Class 8 trucks totaled 13,000 units in June, an 8 percent decline from the prior month, according to preliminary data from the freight forecaster FTR Transportation Intelligence.
   Class 8 truck orders have now fallen in five of the first six months of 2016, and the June order activity represented the lowest monthly total since July 2012.
   FTR noted Class 8 orders for the month were also down 34 percent compared with June 2015 and the lowest level for the month since 2009.
   As a result, the annualized rate for orders has continued to fall as well, now at 162,000 for the past three months, 185,000 for the past six months and 224,000 over the past 12 months.
   FTR said the “tepid” order activity in June is expected to continue through the summer months and that all OEM’s were equally impacted by slow order intake.
   “The Class 8 market is stuck in a holding pattern, at the bottom end of this cycle,” said Don Ake, vice president of Commercial Vehicles at FTR. “Fleets are cautious as freight demand has cooled off this year. There are enough trucks to handle freight right now with carriers are in a wait-and-see mode, before adding trucks or replacing older units.”
   “This is what the summer looks like in a market down cycle, so we can expect this level of activity for a couple more months,” he added.
   “We do anticipate higher orders later this year. However, the volume of orders will be determined by the strength of the economy and freight activity at that time.”