Subscribe to our free, weekly email newsletter!


Trucking news: ACT reports U.S. commerical trailer net orders are down in June

By Jeff Berman, Group News Editor
July 27, 2011

Data published this week by ACT Research, a provider of data and analysis for trucks and other commercial vehicles, indicated that June marked the third straight month to see a decline in U.S. commercial trailer net orders with a 26 percent decrease from May.

ACT said that this most recent decline, in conjunction with an increase in trailer production, has seen industry backlogs dip 5 percent from May to June, with June’s orderboard at 97,000 units. And even with the decline in orders in June, ACT said that industry backlog is more than twice as high as it was last year at this time.

“The fall-off in net orders was greater than anticipated,” said Frank Maly, Director CV Transportation Analysis and Research with ACT, in a statement. “A positive factor to keep in mind is that cancellations of existing commitments on the orderboards were not an issue; new order weakness was the cause. We are in a seasonally low time of the year for new order placement. Fleet order rates will need to be closely monitored over the next couple of months to determine if the recent order softness is a short-lived pause or the start of a new trend in the industry recovery.”

ACT reported last week that following nine months of order backlogs for Class 8 trucks, June saw a less than 1 percent decrease.

This marked the second consecutive month of slower order activity, according to ACT, with net orders hitting 21,266 units on a non-seasonal basis, which was 9 percent lower than May’s output. This data was featured in ACT’s most recent State of the Industry report.

This decline continues a slowdown that has been occurring since a big order intake in April, caused by some artificial things that were starting to pull demand ahead, said Steve Tam, vice president-commercial sector at ACT, in an interview. Among these “artificial” things are signals from truck OEMs that price increases for parts and components is coming, with discounting starting to cease as pricing is returning their way.

These things all manifested themselves in the form of some type of a price increase, with truckers looking to buy equipment doing so in April, according to Tam.

“Truckers are creatures of habit so their capital investment cycle follows a fairly predictable pattern, which helps us gauge what is going on,” said Tam. “We can expect to see orders remain down at this lower level through at least September and probably October.”

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

Total POLB volumes dropped 9.1 percent in August at 573,083 TEU, and POLA volumes in August were up 6.7 percent compared to August 2013 at 757,702 TEU.

Following a week in which the average price per gallon was flat, diesel prices resumed their decline, falling 1.3 cents to $3.801 per gallon, according to the Department of Energy’s Energy Information Administration.

Read how others are using Business Process Modeling to implement Microsoft Dynamics AX with reduced risk.

While diesel prices have largely been out of the spotlight in 2014, freight transportation and logistics stakeholders always need to keep a close eye on what prices are doing, as it has a significant impact on transportation budgets and forecasting.

Railroad service issues and rates, which many rail shippers deem as unreasonable, are front and center in a piece of legislation to be introduced soon by Senators Jay Rockefeller (D-WV) and John Thune (R-SD), chairman and ranking member of the Senate Committee on Commerce Science and Transportation.

Article Topics

News · Trucking · Transportation · ACT Research · 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