Subscribe to our free, weekly email newsletter!


Preliminary July Class 8 orders hit lowest point in nearly two years, says FTR

By Jeff Berman, Group News Editor
August 06, 2012

Freight transportation forecasting firm FTR Associates recently reported that its preliminary data for July Class 8 truck net orders hit its lowest level since August 2010.

July orders—at 12,568 units—are down 32 percent annually, said FTR. The firm added that these orders, which comprise all major North American OEMs, are down 23 percent compared to June, which was also a weak month, and continue to “reflect soft demand” for Class 8 orders.

The three-month period of orders for May through July equates to 186,300 units on an annual basis, according to FTR data.

To put into perspective how sluggish orders are at the moment, annualized order numbers for the March through May three-month period was 216,700 units and the December-February period was 308,000 units, according to FTR data.

“While orders came in below expectations, they didn’t really surprise us,” said FTR President Eric Starks in a statement. “We have been forecasting slower sales of Class 8 vehicles in the second half of 2012 for some time, and the reported order numbers for July support our current outlook for the remainder of the year.”
that point, explaining in an

FTR Director of Transportation Analysis Jon Starks said in a recent interview that while things are sluggish on the orders front, they are not necessarily bad.

One reason for this disconnect, said Jon Starks, is that there was way too much optimism on the OEM side.

“They got ahead of themselves and saw things going in one direction much too fast, so when we get to the back half of 2012 we think there is going to be a significant reduction coming in terms of what the OEMs are doing,” he explained.

Unless there is a strong surge in orders in the next few months, Jon Starks said it is very likely OEM production numbers are going to have to come down. He also noted that a “weak spell” for orders in 2011 carried over into 2012, with OEM’s requiring time to sort through the net effect of orders.

Given that situation, he said it stands to reason that Class 8 sales will be sluggish for the next 6-to-12 months.

“At the beginning of the year OEMS were producing well above what the sales environment was and had built out quite a bit of inventory on the production side,” said Jon Starks. “Sales did not drop off, though, instead they were more sluggish than anticipated.”

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

The study examines the trajectory of offshoring cost arbitrage to low-cost developing countries, the rise of new locations, and the fact that there’s ample room for growth.

In a rare show of solidarity, various trucking interests are asking the Department of Transportation’s Federal Motor Carrier Safety Administration to remove online safety ratings of individual motor carriers until flaws in the CSA methodology are fixed.

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Carload volumes were up 1.4 percent at 300,388, and intermodal volume for the week ending September 13 was up 5 percent at 279,052 trailers and containers.

Company says the Cloud offering allows customers to respond more quickly to new business opportunities, without significant upfront cost and implementation times.

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