Subscribe to our free, weekly email newsletter!


Trucking news: ACT reports commercial trailer orders remain down

By Jeff Berman, Group News Editor
June 29, 2011

Data published this week by ACT Research, a provider of data and analysis for trucks and other commercial vehicles, indicated that total U.S. trailer net orders dipped for the second straight month, falling 9 percent in May.

But even with the decline, ACT officials said the backlog in commercial orders is expanding, up 1 percent from April at 102,500 units. The firm also said that the trailer build was up 87 percent from May 2010 and industry backlog was up 122 percent annually.

“The decline in April net orders was actually in line with what would be expected from normal industry patterns,” said Frank Maly, Director CV Transportation Analysis and Research with ACT, in a statement. “The order board continues to appear solid, as supported by extremely low order cancellations. Fleets have taken their positions in OEMs’ production plans and, so far, are maintaining those commitments.”

Earlier this month, ACT reported that ACT reported that preliminary net orders in May for heavy-duty Class 8 vehicles in North American markets hit 24,400 units, marking the seventh straight month orders have been above the 24,000 mark and a “clear sign” of increased demand.

“Freight hauling capacity is still tight and not showing any signs of letting up,” said Steve Tam, ACT vice president-commercial sector, in a recent interview. “From a shipper’s perspective, that means carriers are going to keep coming back to them for rate increases and some assurance that business is going to keep going. They could be looking for more favorable fuel surcharges, depending on what happens with fuel prices. Unfortunately, shippers are getting the short end of the stick this time around, whereas things are going pretty well for carriers. They have the pricing power and the ball is in their court at this point.

Tam added that carriers also finally have the wherewithal to replace some aging equipment that requires more care and maintenance, which comes with an attached price tag.

This means, that it does not always make great economic sense to keep running older equipment, expediting the need for newer equipment, which Tam said is what many carriers are doing.

“More carriers are showing healthy balance sheets, which the banks are signing off on so carriers can get deals done to buy trucks,” said Tam.

ACT also reported this week that sales volumes of used trucks were down in all sales channels in May, with volumes down 15 percent from April.

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

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Article Topics

News · Trucking · Transportation · 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