Subscribe to our free, weekly email newsletter!

Trucking news: ACT reports trailer net orders up nearly 60 percent

By Jeff Berman, Group News Editor
June 28, 2010

The market for Class 8 vehicle equipment continues to resonate with good news for orders and production. The most recent news comes from ACT Research Co., a provider of data and analysis for trucks and other commercial vehicles, whom reported that commercial trailer net orders in May were up 59 percent year-over-year.

On a year-to-date basis, net orders for trailers are up 69 percent, said ACT, coupled with order cancellations running low as truck fleets continue to see increased demand for services.

“All signs are indicating that freight growth is rapidly absorbing excess truck capacity,” said Kenny Vieth, senior analyst and partner with ACT Research, in a statement.

“With capacity tightening, trucker profits should begin to improve and swing the pendulum in favor of replacing and growing an aging trailer fleet.”

Last week, ACT reported that net orders for heavy-duty Class 8 commercial vehicles were up 84 percent in May year-over-year.

In its “State of the Industry: Classes 5-8 Vehicles,” ACT reported 13,231 net orders of Class 8 vehicles.  They said that more than half of the orders are scheduled for delivery in the third quarter, which is a strong sign that truck fleets are looking to get new units on the road before the peak fall shipping season.

This report follows a recent ACT forecast which cited a strengthening North American economy and improving supply/demand balance of freight hauling truck capacity, serving as the catalysts for a continuing rebound of orders and production of commercial vehicles is underway.

In its ACT North American Commercial Vehicle Outlook that its 2010 forecast for Class 8 vehicle production was increased by 4,500 units. This brings to total projection to 146,000 units, according to Vieth. Despite the increase, Vieth told LM in a recent interview that a typical unit replacement figure is about 200,000.

“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.


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

Like last month, the current state of affairs was presented in somewhat stark terms in the most recent edition of the Shippers Condition Index (SCI) recently issued by freight transportation consultancy FTR.

The planned acquisition of TNT NV by FedEx moved one step closer to fruition last week, when the United States Federal Trade Commission (FTC) signed off on the deal in the form of getting U.S. antitrust permission to merge, according to a Reuters report.

Logistics Management recently spoke with Abtin Hamidi, chief vice president and co-founder of Mountain View, Calif.-based CargoChief, a provider of transportation and logistics technology focused on providing shippers with securing over-the-road capacity and pricing, among other services.

Christopher L. Koch, who just retired from a 15-year tenure as president and CEO of the World Shipping Council (WSC), and continues to serve as its senior advisor, is still telling shippers to stay the course.

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

Article Topics

News · Motor Freight · Shipping · ACT Research · All topics


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