Preliminary North American Class 8 orders are strong again in June

Preliminary North American Class 8 net truck orders remained strong in June, according to recent data respectively issued by freight transportation consultancy FTR and ACT Research, a provider of data and analysis for trucks and other commercial vehicles.

FTR reported that preliminary June North American Class 8 orders—at 26,700 units—were up 13% compared to May. And it added that orders increased 71% annually, with total Class 8 orders coming in at 431,000 units for the 12-month period through June. The firm noted that this tally is positive, in that it serves as an indicator that the current order cycle bottomed out at 24,000 orders in May, which nearly doubles the typical low point. FTR also observed that it expects a surge of orders, when OEMs begin 2020 bookings, which could happen as early as July.

“It appears that June was a transitory month. Orders for delivery in 2021 are ending, as fleets grabbed the remaining built slots for 2021 and there are indications that some early orders for 2022 were added to the mix,” said Don Ake, vice president of commercial vehicles for FTR, in a statement. “Presently, the first quarter of 2022 is uncertain from a production standpoint because unfilled orders from 2021 are expected to roll into 2022. Supply chain issues continue to restrict OEM production, creating a shortage of new trucks and generating a great deal of pent-up demand. Fleets are still in desperate need of new trucks to handle the surge in freight growth. The full opening of the economy continues to strain deliveries, with service levels falling at some of the most reliable carriers. Spot freight rates remain highly elevated, an indicator that freight capacity is being greatly stressed.”

ACT data:June preliminary North American Class 8 net orders came in at 25,700 units, for an 11% increase over May and a 61% annual gain.

“With 2021 backlogs essentially filled and 2022 order activity remaining calendar constrained, North American Classes 5-8 orders in June moved sideways from May,” said Kenny Vieth, ACT’s President and Senior Analyst, in a statement. “We reiterate that order moderation aligns with expectations, driven by the supply of open build slots in 2021 and not fully opened 2022 orderbooks, rather than any material fall-off in demand for equipment. “With [heavy-duty] orders below recent activity, the three and six-month net order SAARs continued to moderate, but remain at still-robust run rate levels.”