Preliminary Class 8 tractor orders in August reflect robust spot freight rates as pandemic-driven demand for consumables over services continues.
ACT Research reported 19,500 preliminary net orders, down 4% from July, but up 75% from an easy year-ago comparison. FTR Transportation Intelligence pegged orders at 20,500 units with net orders totaling 177,000 over the last 12 months.
Counting Class 5-7 medium-duty trucks, truck orders rose to an eight-month high. The third consecutive month of gains followed year-over-year declines in 18 of the previous 19 months, ACT said.
The heavy-duty order strength came despite some trucks being sidelined by financially troubled companies.
“Considerable parked Class 8 tractor capacity, generous unemployment benefits, and consumers spending more on goods and less on experiences has created a perfect storm for carrier profits over the past several months,” said Kenny Vieth, ACT president and senior analyst.
Ordering just what is needed
Large fleets continue to buy new trucks according to their replacement cycles. Few orders reflect added capacity, FTR said.
“This is an odd situation in that it is a highly uncertain, yet very stable, environment,” said Don Ake, FTR vice president of commercial vehicles. “You have a pandemic, a presidential campaign, and social unrest all occurring at the same time. However, the economy is briskly recovering and generating ample freight.”
Orders are closely matched to production rates, meaning backlogs are stable,
“Orders are expected to stay in the 20,000 range for the next few months with buyer confidence increasing as the economy recovers and freight volumes rise,” Ake said. “There is less uncertainty regarding the pandemic as businesses and consumers adapt to the current environment.”
Related articles:
Freight demand drives up Class 8 truck orders in July
June Class 8 truck orders rebound to four-month high
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now