FTR

Preliminary North American Class 8 net orders have declined for the fourth consecutive month after reaching a record high in September 2022.

The freight environment was tougher for shippers in September as capacity utilization tightened and freight volume increased.

Labor conditions, component supply chains, and volatile raw material prices continue to prevent OEMs from committing to new trailer orders.

OEMs could increase production by about 10% over the current rate if they could get the parts, but the supply chain remains clogged.

The outlook for the Shippers Condition Index (SCI) is for little change as utilization and rates are expected to remain mildly unfavorable for shippers.

FTR reports that preliminary North American Class 8 net orders show a modest gain in June to 15,000 units.

The outlook is mildly positive in the near term, but ongoing fuel price increases and other factors could result in further negative readings.

FTR reports trailer orders fell back substantially in April to 16,800 units. Trailer orders for the past twelve months have totaled 252,000 units.

FTR’s Trucking Conditions Index (TCI) improved slightly in February ahead of a plunge in March.

FTR reports preliminary North American Class 8 net orders for March stayed within the tight range of the past several months.

There is tremendous demand for new trailers and the supply chain crisis has created a severe shortage.

FTR reports that the industry is in a tight holding pattern, as supply chain shortages continue to prevent trailer build rates from rising.

FTR reports final trailer orders improved in September to 28,300 units only because a few large fleets sent in requirements for 2022.