Class 8 truck orders in July lowest since 2010

Ftr Preliminary Class 8 Truck Orders For July 2019Class 8 truck orders in July reached the lowest point since 2010. The preliminary totals for orders in North America were 10,200, according to ACT Research, while FTR reported a total of 9,800.

ACT states the units booked in July is down 21 percent from June.

“Weak freight market and rate conditions across North America and a still-large Class 8 backlog continue to bedevil new Class 8 orders. Though, with OEMs opening their new model-year order books in June and July, order weakness is increasingly the story of an over-capacitized Class 8 fleet,” says Kenny Vieth, ACT president and senior analyst.

“Seasonal adjustment boosts July’s intake to 12,100 units, bringing the ‘worst since’ comparison measurably closer to October 2016,” Vieth says.

Despite most order boards being opened for 2020 build slots, FTR reports carriers appear in no rush to grab production capacity. July orders were 24 percent below an already soft June with a -82 percent year-over-year comparison. Class 8 orders for the past 12 months have now fallen to a total of 288,000 units.

“Fleets continue to take a wait and see approach to 2020 equipment. Potentially higher equipment costs, uncertain demand and enough available capacity in the market are keeping order activity at bay” says Jonathan Starks, FTR chief intelligence officer.

Regarding the medium-duty market, ACT’s Vieth says, “While not as weak, and after a seven-year positive run, the medium-duty segment is looking increasingly tired, with July’s preliminary Classes 5-7 net orders at 15,900 units, down 20 percent year over year and 18 percent through year-to-date July. Seasonal adjustment provides a major boost to July’s medium-duty net orders, which rise to 19,100 units, still the lowest adjusted tally since October 2016.”

Complete industry data for July, including final order numbers, will be published by ACT Research in mid-August and FTR’s final data for July will be available later in the month as part of its North American Commercial Truck & Trailer Outlook service.

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