Subscribe to our free, weekly email newsletter!


Trucking: Class 8 net orders rebound in December, says ACT Research

By Jeff Berman, Group News Editor
January 20, 2012

Coming off of November, which saw new orders for Class 8 trucks decline from October, data from ACT Research, a provider of data and analysis for trucks and other commercial vehicles, showed that December rebounded in impressive fashion, with the second best order month in six years.

December Class 8 net orders increased to 30,293 units, said ACT, adding that on a seasonally-adjusted basis December represents the best month since April 2011.

“We think November’s drop in Class 8 orders was circumstantial, rather than fundamentally derived,” said Kenny Vieth, president and senior analyst at ACT, in a statement. “Part of the order drop in November was a significant spike in cancellations. To that end, part of December’s net order strength was a plunge in cancellations to their second lowest level in 2011.”

The final tally for November was 20,603 new orders and was very close to its estimate at 20,603 orders. But even with this decline, it noted that the demand situation for Class 8 vehicles remains favorable.

In a recent interview with LM, Vieth said that even with a down November, his firm remained pretty bullish on the underlying demand trends.

He added that even a slight improvement in volume or demand could spur a decent uptick in orders, too.

When asked how things were trending out order-wise for the month of December, Vieth said that visibility into that was not clear at that time, although he noted that because of the 100 percent bonus depreciation allowance for capital goods deduction, which expired at the end of 2011, things pointed to a good retail sales month for trucks in December.

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

For November, which is the most recent month for which data is available, the SCI came in at -3.2. While this is still entrenched in negative territory, it represents an improvement over October and September, which were -5.5 and -6.6, respectively.

Total December shipments––at 1,150,810––were 3 percent better than November and up 5 percent annually. And total 2014 shipments––at 14,092,551––were up 5.61 percent, setting a new record for annual shipments during the time which Panjiva has been collecting this data since 2007.

The biggest story in the energy sector has to be the 30% decline in oil prices since June to a level not seen since the global recession cut a whopping 6% from global consumption back in 2009.

The challenge for air cargo operators to fill capacity, and the confidence to add capacity, remain the same as the demand curve for air freight services recovers.

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

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