Subscribe to our free, weekly email newsletter!


Trucking news: ACT data says August commercial vehicle orders hang tough

By Jeff Berman, Group News Editor
September 21, 2011

Data from ACT Research, a provider of data and analysis for trucks and other commercial vehicles, showed that commercial vehicle orders did fairly well in August in light of the increasing amount of economic turmoil in recent weeks.

LM reported last week that in ACT’s preliminary reading of the North American medium and heavy-duty vehicle markets, North American Class 8 order hit 21,200 units, which was ahead of the preliminary tally of 20,800 units.

August is up 13 percent improvement over July’s 18,700 orders and 71 percent improvement over July 2010’s 12,400 orders.

“The events that caused confidence to wane are still in play and are likely to haunt the economy in coming quarters” stated Kenny Vieth, president and senior analyst at ACT, in a statement. “However, there was not any perceptible impact on the front-end of the commercial vehicle demand continuum. Medium duty and heavy duty vehicle orders rose above expectations during the month and cancellations remained modest.”

ACT President and Senior Analyst Kenny Vieth told LM in a recent interview that ACT had some early concerns about how the August numbers would turn out due to political turmoil and faltering consumer confidence numbers, among other things.

“We were a little bit leery as to how things would look,” said Vieth. “July and August represent the two weakest order months of the year. The fact that we approached 21,000 orders in August, given the backdrop of [negative] headlines made these numbers a pleasant surprise.”

The underlying fundamentals in the marketplace remain strong, said Vieth, explaining that there is more freight relative to trucks on the road. Pricing remains healthy, and that was reflected in the second quarter as carriers reported strong profit margins.

Another factor influencing higher orders is that used equipment prices are continuing to rise, said Vieth.

“There is enough freight out there and truckers are making money hauling that freight,” he said.  “Used asset evaluations are strong so it is facilitating a continued ability to replace older trucks with newer trucks.

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 long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

According to its data, spot market volume for the month of September was up 32 percent on an annual basis and set a new record for the 14th straight month, with gains for each of the three equipment categories it tracks, including load availability for: dry vans up 42 percent; refrigerated (reefer) up 24 percent; and flatbed volume up 46 percent.

FedEx Freight and Con-way Freight, two of the largest non-union LTL carriers in the nation, are battling organizing efforts by the Teamsters union in a closely watched unionization effort.

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