Microchip shortages and skyrocketing commodity prices make it unlikely that any of the 33,500 new Class 8 trucks ordered in April will be built this year.
Many carriers expanded their fleets after the 2018 freight boom and were rewarded with an extremely challenging oversupplied market in 2019. The current pattern looks eerily similar to early 2018, but are they comparable?
The growing backlog of new truck orders has supercharged pricing for newer used models at auctions, with retail traffic also high.
Trailer orders edged back toward trend in March, but the crush of orders in recent months leaves manufacturers addled by supply chain issues struggling.
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Trailer makers cannot keep up with demand, pushing out delivery times while navigating supply chain bumps.
New Class 8 truck orders are piling up, leading fleets to turn to used equipment to add capacity in a consumer-driven freight market.
Class 8 truck orders have exceeded 30,000 a month for six consecutive months, more bookings than in the previous 18 months combined.
After four straight months of near-record orders, trailer bookings took a breather in January as some manufacturers slowed taking reservations.
Rush Enterprises sold Class 8 trucks at a level reflecting the industry’s overall COVID-impacted decline in 2020. It expects better results in 2021 and beyond.
Parts shortages and supply chain issues could push planned Q1 production into spring as robust orders continue in January.
Prices for used Class 8 tractors should maintain the momentum from the last half of 2020, but the nation’s unemployment rate could affect that, according to J.D. Power Valuation Services.
2020 was supposed to be a year when trailer orders dropped after racing ahead of Class 8 tractor reservations. Even with practically no orders in April, annual trailer bookings blew away early-year predictions.
Consumer goods demand, recovery in manufacturing and shortage of drivers combine to create profits that fleets spend to upgrade and expand truck capacity.
Orders for new trailers dipped in November but the total bookings in the last three months are still the second highest in industry history.
The Cass Freight Index sees sequential weakness in shipments but logs year-over-year improvement with expenditures data advancing.
Heavy-duty trucks with collision avoidance, emergency braking and other safety technologies are beginning to enter the used truck market, potentially making the roads safer as older trucks are retired.
Preliminary Class 8 truck orders in November were the third highest in history as fleets anticipating steady freight demand locked up build slots in 2021.
The trend of improving used truck sales stalled in October. But year-over-year price gains are holding up. Added capacity could be a problem if pandemic shutdowns slow freight demand.
Concern over the supply chain for wood and aluminum components to build new trailers adds to consumer goods-driven demand that pushed equipment orders over 50,000 for a second straight month in October.
