ACT reports Class 8 net orders are up 93 percent

Even though trucking capacity remains tight, an ongoing increase in Class 8 commercial vehicle orders and production remains strong, according to data released by ACT Research, a provider of data and analysis for trucks and other commercial vehicles.

<p>Published about two weeks after the end of the month, the “State of the Industry: N.A. Classes 5-8 Vehicles” report offers the most up-to-date commercial vehicle market indicators available.</p>

Published about two weeks after the end of the month, the “State of the Industry: N.A. Classes 5-8 Vehicles” report offers the most up-to-date commercial vehicle market indicators available.

in the News

State of Logistics 2016: Pursue mutual benefit
May trade between U.S. and NAFTA partners down 3.1 percent
UPS reports solid Q2 earnings paced by international and B2C growth
AAR reports another week of declining volumes
Despite mixed Q2 results, transportation & logistics deal making prospects look bright
More News
By ·

Even though trucking capacity remains tight, an ongoing increase in Class 8 commercial vehicle orders and production remains strong, according to data released by ACT Research, a provider of data and analysis for trucks and other commercial vehicles.

In its “State of the Industry: Classes 5-8 Vehicles” report, ACT said net orders for Class 8 vehicles reached its highest level of the year, with a 93 percent year-over-year gain in June, which topped an 84 percent bump in May. ACT also noted that June’s 15,999 Class 8 net orders were 21 percent higher than May.

ACT Vice President Steve Tam said in a statement that early second quarter reports from publicly traded truckload carriers confirm an improving freight transportation market, with revenues and profits up significantly from 2009. Tam also said that overall orders are still below replacement levels but momentum is building as profitability improves for carriers.

A typical unit replacement figure for a full year is about 200,000 Class 8 vehicles, ACT Partner and Senior Analyst Kenny Vieth recently told LM. He added that the total projection for replacement vehicles is nearly 150,000 units. In recent months, large carriers like J.B. Hunt and Con-way Freight, among others, have made significant replacement truck orders.

“The good news is the forecast is going up and also that even though the forecast is going up it is still well below replacement levels for equipment so capacity continues to bleed out of the market, with incremental improvement in demand,” said Vieth.

Even though demand is improving, the current situation is still not a case of carriers asking for “as many trucks as you can build me right now,” Vieth explained. But he did say this may be coming in the next four-to-six months.

What’s more, Vieth said there have been modest upside surprises on orders in the last three months, which has been encouraging from an equipment perspective.

“What has been nice from an equipment perspective is the strength of demand has hit in all north American markets—in the U.S., Canada, and Mexico and up across equipment types so we have seen orders for tractors with and without sleepers going up,” said Vieth. “We have seen an increase in day cab trucks, and it is kind of everything being just a little bit better than it was.”

While production levels for Class 8 trucks are below replacement levels, Vieth said there continues to be an upward trend in used truck pricing. And over the past six months, he said ACT has seen a $5,000 increase in the six-month run rate it tracks over the past six months. ACT expects an increase of another $5,000 over the next three-to-five months.


About the Author

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. Contact Jeff Berman

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!

Article Topics

Class 8 Trucks · Trucking · All Topics
Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo