Subscribe to our free, weekly email newsletter!


Trucking news: FTR cites strong growth in Class 8 net orders in June

By Jeff Berman, Group News Editor
July 08, 2010

Showing that there is still positive momentum in the trucking sector, freight transportation consultancy FTR Associates said this week that June Class 8 truck total net orders were up significantly compared to May.

At 15,567 units, June was up 20.5 percent compared to May and was up 90.8 percent compared to a rocky June 2009. FTR said that June orders reflect an annualized rate of 188,000 units, which brings the annualized rate for orders in the first half of 2010—which includes U.S., Canada, Mexico, and exports—to 137,000 units.

FTR President Eric Starks said in a statement that this increase in order activity is a welcome sign that the recovery for the commercial vehicle sector remains right on track, adding that with the stronger order activity, third quarter production levels will likely b higher than anticipated.

And in an interview with LM Starks pointed out that while these numbers are positive, most of these orders are for replacement vehicles.

“Looking at these numbers, they really need to be a couple thousand higher to start seeing additional expansion to fleets,” said Starks. “Carriers are being more optimistic about replacing equipment, which is good.”

A meaningful uptick in order activity is not likely to occur until August or September, according to Starks. But June’s strong performance is a good indicator that things are starting to firm up.

And while freight tonnage numbers of late have seen some fluctuation, Starks said that is to be expected.

“This [data] confirms the freight environment is on solid footing,” said Starks.

FTR’s data follows a late June release 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.

And in its ACT North American Commercial Vehicle Outlook ACT said that its 2010 forecast for Class 8 vehicle production was increased by 4,500 units. This brings the 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

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Article Topics

News · Motor Freight · Transportation · 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