Class 8 truck orders fall below '23 level for first time this year

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North American Class 8 nett orders dipped successful June to 14,800 units, according to preliminary information from ACT Research. June bid activity was down 37% month-over-month and 12% year-over-year.

FTR Transportation Intelligence information showed that Class 8 preliminary nett orders for June astatine 13,100 units, down 33% month-over-month and 6% year-over-year. Class 8 orders for nan past 12 months person now totaled 273,700 units.

Na Class 8 Net OrdersACT Research

June’s orders are little than normal marketplace results, pursuing a beardown five-month play wherever orders were averaging 25% higher annually, according to FTR.

During nan first 3 months of nan year, orders averaged astir 18,000 units per month. In nan past 3 months, they person slowed to conscionable nether 16,000 units per month, which is simply a normal seasonal decline. Despite nan slowdown, FTR said that accumulation slots for Class 8 trucks are still being filled astatine a “steady, albeit slowing, pace.”

Looking into June’s diminution successful orders, FTR said it was successful statement pinch seasonal expectations. The year-over-year alteration is nan first 1 to day successful 2024, pinch FTR saying it is “relatively insignificant because it is humble and because of nan beardown bid capacity complete nan erstwhile 5 months.”

While each OEMs had bid decreases, FTR said that its preliminary information shows that vocational marketplace request dropped much significantly.

The marketplace is still performing astatine aliases supra replacement levels for incoming orders, said Dan Moyer, elder analyst, commercialized vehicles astatine FTR. “Despite stagnant freight markets, fleets proceed to put successful caller equipment.”

Moyer added, “Order levels are successful statement pinch humanities averages and seasonal expectations, and marketplace fundamentals stay small changed based connected these preliminary orders.”

[RELATED: Pre-buy and request for instrumentality successful Mexico apt influenced Class 8 motortruck orders bump successful May]

Even successful favorable years, Q2 typically sees below-trend orders, while Q4 orders mightiness spark optimism astatine nan bottommost of nan cycle, said Kenny Vieth, ACT’s president and elder analyst.

Vieth commented that pinch nan existent prolonged debased freight volumes, suppressed rates and ongoing marketplace overcapacity, for-hire carriers’ financial capacity remains poor.

“Entering nan historically worst clip of nan twelvemonth for orders astatine nan bottommost of tractor buyers’ profitability rhythm is producing results successful statement pinch expectations,” Vieth noted.

Meanwhile, Vieth said nan strongest assemblage successful nan system has been user services spending, which has helped support unchangeable request for medium-duty trucks. “Reflecting underlying work assemblage strength, North American Classes 5-7 nett orders were 19,000 units successful June, down 1.6% month-over-month, but up an in-line 3.3% year-over-year.”

Pamella De Leon is simply a elder editor of Commercial Carrier Journal. An avid scholar and recreation enthusiast, she likes hiking, running, and is ever connected nan look retired for a bully cup of chai. Reach her at [email protected]

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