Trailer orders hit their lowest level in nearly a decade in June, mirroring the slowdown in new truck orders after record performances for both in 2018.
ACT Research says the trucking industry meets the definition of being in a technical recession as all major metrics it tracks have declined for two consecutive quarters.
Class 8 truck orders rose sightly in June from May’s figures, but posted their worst first six months of the year since 2010.
Sales of used trucks in the Class 8 market plummeted 22 percent in May compared with the same month a year earlier, and dropped 8 percent from the previous month.
Preliminary used truck sales in the heaviest weight segment – Class 8 – dropped 22 percent in May compared with the May 2018.
Preliminary used truck sales in the heaviest weight segment – Class 8 – fell 13 percent in April compared with the same month a year earlier.
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March orders for new trucks in the medium-duty weight segment dropped 32 percent compared with the same month in 2018.
March orders for new trucks in the heaviest Class 8 weight segment plummeted 66 percent compared with the same month in 2018.
The average price of a Class 8 used truck sold in February was $48,173, nearly 15 percent higher than the same month a year ago when trucks were selling for $41,995, according to ACT Research.
Freight levels have dropped from last year, but panelists at the ACT Research conference this week said they have simply returned to more normal levels.
It’s been about 50 years since a truck maker has successfully entered the Class 8 market in North America and lasted, said Dominik Beckman, director of marketing and dealer operations for Hino Trucks. So what makes Hino think it can do that now?
ACT Research is forecasting 335,000 truck orders in 2019, but a sharp dropoff in 2020.
Rate increases are slowing and could even turn negative later this year, although fleet profits should remain strong for much of the year.
There are plenty of conflicting data points on the direction of the economy, which might suggest that everything may be just fine in the near term.
Truck trailer orders dropped for the third straight month in February.
Nothing is certain except death and taxes. And, apparently, vehicle recalls.
January new truck orders have fallen 26 percent from December, continuing a trend that has developed after record-breaking months last year.
Used truck pricing and volumes posted big gains in 2018 as a combination of factors, including a booming economy and limited availability of new trucks played a role.
The numbers year-on-year are still way up, but there’s been a definite sign of some slowdown.
