Subscribe to our free, weekly email newsletter!


ACT says Class 8 net orders heading in the right direction

By Jeff Berman, Group News Editor
January 20, 2011

On the heels of a promising projection for fourth quarter 2010 Class 8 vehicle net orders, ACT Research, a provider of data and analysis for trucks and other commercial vehicles, said that December net orders of heavy-duty Class 8 commercial vehicles for North American markets at 27, 044 units were up 128 percent year-over-year.

ACT said in its most recent edition of “State of the Industry: Classes 5-8 Vehicles” that Class 8 orders in December hit its highest monthly total since May 2006, with full-year production of Class 8 vehicles up 30 percent over 2009 at 154,290 units.

“Unlike previous cycles that have been dominated by the U.S., there is a greater breadth of geographic demand for Class 8 equipment this time,” said Kenny Vieth, president and senior analyst, in a statement. “While U.S. demand is ramping nicely, orders bound for Canada; Mexico; and non-NAFTA export markets remain at healthy levels,” added Vieth.

Earlier this month, ACT projected full-year 2010 Class 8 production to come in at about 154,500 units for a 31 percent gain over a weak 2009 and remains below normal replacement demand. The firm added that it expects demand to continue over the next two years, calling for 2012 and 2013 production to top 300,000 units. On the trailer side, ACT expects production to hit annual growth rates north of 50 percent in 2010 and 2011 compared to a weak 2009.

In a recent interview with LM, Vieth said that “all the stars are aligning” when it comes to Class 8 demand and the current environment.

As 2010 progressed, Vieth said there was a continued shrinkage of Class 8 fleets, with fewer Class 8 trucks on the road at the end of 2010 than there were at the beginning of 2010.

“We had growing freight volume throughout 2010, especially in the first half of the year,” said Vieth. “With freight growing and the tractor supply falling, trucker profitability rose. And used truck prices went up throughout the year. In December 2009, the average used truck price was roughly $35,000-to-$36,000, and at the end of 2010 that price was more than $43,000.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Article Topics

News · Trucking · Transportation · ACT Research · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA