FTR Reports Preliminary North American Class 8 Net Orders Show Modest Gain in June to 15,000 Units
Bloomington, IN – (Trailer Technician) – FTR reports preliminary North American Class 8 net orders for June rose modestly m/m to 15,000 units. Orders continue to be subdued, as 2023 build slots remain restricted due to limited visibility into future conditions surrounding material costs and lead times. June activity was up 13% from May and down 36% y/y. Class 8 orders have totaled 260,000 units over the last twelve months.
OEMs are quickly running out of build slots in 2022. Orders continue to track in a restricted range, with June’s total being in line with the prior three months. OEMs are still working to increase build rates; however, semiconductors, tires, and other key components remain in short supply and continue to limit production.
Charles Roth, analyst-commercial vehicles for FTR, commented “The June number is positive in the sense that all OEMs entered orders indicating some optimism about improved future supply chain performance. The current order volume still understates the tremendous demand for new trucks.
“The OEMs have a large number of fleet commitments for 2023. They are delaying entering these orders until they know how many they will be able to build each month. Supply chain delays continue to constrain build rates.
“As a result of replacement demand, fleets still need a considerable number of new trucks right now. Industry capacity remains extremely tight, resulting in elevated freight rates. The carriers have freight to haul and funds available for new trucks, but OEMs remain limited due to parts shortages. Also, large fleets are now running vehicles beyond their trade-in cycles and need to trade in older trucks, which will result in increased replacement demand in 2023.”
Final data for June will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service. To contact FTR, email [email protected] or call (888) 988-1699 ext. 1.
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
To learn more about FTR visit www.FTRintel.com. Follow us on twitter @FTRintel and connect with us on LinkedIn! To contact FTR, call 888-988-1699 or email [email protected]