Preliminary Class 8 truck orders are strong in March, according to FTR and ACT data

Preliminary North American Class 8 net truck orders impressed again in March, according to recent data respectively issued by freight transportation consultancyFTRandACT Research, a provider of data and analysis for trucks and other commercial vehicles.

FTR reported that preliminary March North American Class 8 orders—at 40,800 units—were off 9% compared to February, while still topping the 40,000 mark for the sixth month in a row. And this tally represented more than 33,000 units—or nearly 20%—annual increase, with Class 8 orders coming in at 372,000 over the last 12 months.

FTR said that a significant number of more trucks are needed in order to handle what it called “impressive freight growth” driven by the pairing of the economic recovery and government stimulus. But it added that truck production remains substantially limited by the ongoing semiconductor shortage and other components. And it also noted that fleets are continuing to order in large quantities to secure trucks for future needs.

“There is tremendous pent-up demand being generated due to the constrictions on supply,” said Don Ake, vice president of commercial vehicles for FTR, in a statement. “The pressure in the market is building, as orders continue to flow into OEMs at a record pace. To have this level of orders roll in for half a year is impressive and unprecedented. The component shortages of semiconductors and other parts are causing problems throughout trucking. Fleets desperately need many new trucks right now to keep up with demand, but production throughput is being constricted. It appears the industry will be playing catch-up well into the first half of next year.

What’s more, Ake observed that there are no clear indications of when the supply-chain issues will be resolved, noting FTR expects computer chips to be in short supply for at least a few more months.

“Worker shortages at key suppliers should get alleviated some by the vaccines,” he said. “The backup at the ports will also take a few months to resolve.”

ACT data:March preliminary North American Class 8 net orders came in at 40,000 units, according to ACT. This represents a 10% decrease compared to February, while seeing a 424% annual gain.

“Despite retrenching from February, Class 8 demand remained strong in March, well above replacement and even anticipated economic growth, let alone the industry’s ability to keep pace in the current supply chain constrained environment,” said ACT Vice President Steve Tam in a statement.