FTR Reports Preliminary North American Class 8 Net Orders Slow in May
Bloomington, IN – (Trailer Technician) – FTR reports preliminary North American Class 8 net orders cooled off in May to 23,600 units. Class 8 orders are returning to a pace more in line with seasonal trends. May orders were down 32% m/m but still up 16,800 units y/y from the anemic level of 2020. Class 8 orders now total 420,000 units for the previous 12 months.
Class 8 orders have been on a torrid pace for eight months, and the drop-off in May does not represent a weakening of demand, as freight growth continues to be robust and spot rates are hitting all-time highs. Build slots for delivery this year are filling up, and OEMs are not yet booking for 2022.
Don Ake, vice president of commercial vehicles for FTR, commented, “Most fleets have ordered all the trucks they need for 2021. They are getting frustrated because production is unable to keep up with demand. Carriers need more trucks on the road now, but semiconductor and other component shortages continue to restrict production.”
“There is tremendous pent-up demand being generated in this market. Freight is growing at a brisk pace, but the supply chain bottlenecks slow the flow of new trucks coming off the production line. This, in turn, is keeping the spot market overheated.”
“OEMs are uncertain how to price 2022 models. The prices for steel, aluminum, and rubber have spiked after the economic restart. It is possible we will see record order volumes when the OEMs open their 2022 order boards.”
Final data for May will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service. To contact FTR, email sales@ftrintel.com or call (888) 988-1699 ext. 1.
To access a chart suitable to accompany this news announcement, please go to https://freight.ftrintel.com/class-8-truck-orders
About FTR
For more than 30 years, FTR has served as the industry leader in freight transportation forecasting for the shipping, trucking, rail, intermodal, equipment, and financial communities in North America. FTR’s experts, with over 250 years of combined experience in the transportation industry, provide quantitative analysis with historical and modal-specific insights. FTR’s reports, data, commentary, and insights help clients evaluate market risks, identify new opportunities, and make informed decisions.
FTR is the only company with a complete set of freight data for all modes of transportation with detail at the 3 Digit STCC commodity level. FTR tracks and forecasts 200+ unique commodity groups both quarterly and annually using their proprietary Freight•cast U.S. freight transportation model. FTR’s Transportation Conference held annually in September in Indianapolis is a unique event bringing together every aspect of the freight transportation world into one place. For more information www.FTRconference.com
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