Subscribe to our free, weekly email newsletter!


ACT reports Class 8 net orders are up 93 percent

image

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.

By Jeff Berman, Group News Editor
July 21, 2010

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 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

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

In a separate conference call following CP’s third quarter earnings release call yesterday, CP CEO Hunter Harrison make myriad convincing points for a merger between CP and CSX and offered up his take in general industry M&A as well.

Seasonally-adjusted (SA) for-hire truck tonnage in September checked in at 132.6 (2000=100) for the second straight month, remaining as the current all-time high level for the second month in a row, with November 2013’s 131.0 now the second best month recorded.

Ahead of its third quarter earnings call this Friday, freight transportation and logistics titan UPS rolled out rate increases for 2015 that are set to take effect on December 29, 2014.

The 'Internet of Things' or IoT is a term that has rapidly taken center stage in business and consumer technology circles, with tremendous amounts of hype in both. Don't be distracted if some of the hypothetical consumer examples of the IoT seem far-fetched; the trend has serious implications for businesses. This complimentary whitepaper takes a look at some of the opportunities afforded by the Internet of Business Things.

Article Topics

News · Trucking · Class 8 Trucks · All topics

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