Subscribe to our free, weekly email newsletter!


ACT says October demand for Class 8 trucks is better than expected

By Jeff Berman, Group News Editor
November 21, 2011

Recent data published by ACT Research, a provider of data and analysis for trucks and other commercial vehicles, stated in its most recent State of the Industry report that new and net orders for Class 8 vehicles hit six-month highs in October at 29,824 units and 28,026 units, respectively.

On the net orders side, this tally exceeds previous expectations from ACT earlier this month, when the firm called for 27,700 Class 8 net orders. The firm said that this most recent batch of data suggests that 2011 will end up in good shape with production at or above 250,000 units, as well as pave the way for what it described as a robust 2012.

“News from carriers is good,” said Kenny Vieth, president and senior analyst at ACT, in a statement. “Expectations for future freight and profitability are upbeat. Coupling truckers’ positive outlook into 2012 and the better than consensus economic news supports demand levels that we are seeing in the Class 8 market.”

In an interview with LM, Vieth said that the strength in new orders is broad-based in the sense that it is not just United States-based demand but also from Canada and what he called other non-NAFTA export markets, which are pointing to a combination of healthy market activity and a weak dollar.

These factors, he said, are making North American heavy duty trucks a very attractive global proposition.

“In the U.S. market, September was the first sales month in which sales reached what we could consider to be replacement levels for Class 8 trucks in the U.S. market,” said Vieth. “We are certainly working through considerable pent-up demand. There was no need to replace trucks in 2009, but the economy has been growing since the second half of 2009. Excess capacity in the industry was consumed through about the middle of 2010, and since then we have been ‘cutting into muscle.’ Capacity has still been leaving the economy even as the economy has been growing since mid-2009.” 

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

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

Article Topics

News · Trucking · ACT Research · All topics

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA