class 8 orders

Class 8 truck orders slump in July despite strong demand

The new 57X on-highway truck from Western Star

Class 8 truck orders in July resembled popular concert tickets the day after they are sold out. No one orders any.

The analogy by Don Ake, vice president of commercial vehicles for FTR Transportation Intelligence, captures the situation and the sentiment surrounding new equipment. Parts and components availability is improving. But it is not equal to the pent-up demand for tractors.

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

https://www.freightwaves.com/news/class-8-truck-orders-slump-in-july-despite-strong-demand

May Class 8 truck orders slide seasonally and build slots evaporate

Multicolored row of Freightliner Cascadias

A seasonal slowdown and manufacturers’ caution in booking more Class 8 truck orders than they can produce combined in May to create little change in the new equipment picture.

ACT Research said its preliminary estimate of 14,000 orders actually was a slight uptick considering seasonality. Orders typically decline from April to May.

However, uncertainty about the Russian invasion of Ukraine, interest rates, a potential recession, long backlogs and supply chain-constrained production kept new...

https://www.freightwaves.com/news/may-class-8-truck-orders-slide-seasonally-and-build-slots-evaporate

High costs will limit capacity growth in trucking

Chart of the Week: 3, 4, and 5 Year Old Used Truck Prices, New Class 8 Orders – USA  SONAR: UT3.USA, UT4.USA, UT5.USA, ORDERS.CL8

Used truck prices have increased by over 50% for 3-year-old models over the past 12 months. With the larger fleets struggling to recruit new drivers to the space, cost barriers will limit the small fleet/owner-operator growth as well, helping to extend the capacity crunch on all levels. 

It is a fairly well-known fact inside the trucking industry that over 90% of the...

https://www.freightwaves.com/news/high-costs-will-limit-capacity-growth-in-trucking

Cummins raises financial guidance on blazing trucking demand

Engine maker Cummins Inc. (NYSE: CMI) expects full-year 2021 sales to rise as much as 24% following consensus-crushing Q1 revenue and profits.

First-quarter revenues of $6.1 billion rose 22% over $5 billion the same quarter in 2020. Q1 net income was $603 million, or $4.07 per fully diluted share, compared to $511 million, or $3.41. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 16.1% of sales.

Analysts expected per-share earnings of $3.47 and revenue of $5.35...

https://s29755.pcdn.co/news/cummins-raises-financial-guidance-on-blazing-trucking-demand

Tech-enabled used truck trade-ins could boost road safety

Roadways could soon be a little safer as used trucks equipped with advanced safety technologies trickle into dealerships.

Truck makers began adding collision avoidance and automatic emergency braking as part of advanced driver assistance systems for the 2018 model year. Those trucks are being swapped for even safer models.

Carriers ordered more than 100,000 new Class 8 trucks in September, October and  November.

“All those builds getting added to order boards are going to begin being delivered as...

https://s29755.pcdn.co/news/safety-could-get-a-boost-from-tech-enabled-used-truck-trade-ins

Carriers purchasing trailers over tractors during booming freight market

Chart of the Week:  Outbound Tender Rejection Index – USA, ACT Research Dry Van Trailer Orders, Class 8 Vehicle Orders SONAR: OTRI.USA, ORDERS.VAN, ORDERS.CL8

Tender rejection rates continue to hover around all-time highs as carriers struggle to cover the recent freight boom, driving rates and revenues higher. The last time this occurred carriers rushed to purchase record amounts of equipment in 2018. But this time around, trailers are the equipment of choice over tractors.  

This past Monday...

https://s29755.pcdn.co/news/carriers-purchasing-trailers-over-tractors-during-booming-freight-market

Truckload tightness to continue, U.S. Xpress report says

U.S. Xpress truck on highway

In its September industry forecast, Chattanooga, Tennessee-based truckload (TL) carrier U.S. Xpress (NYSE: USX) identified three primary catalysts – higher driver turnover, declining TL capacity and “overwhelming” volumes – that will place upward pressure on rates through 2021.

“Each of these three themes will greatly influence trucking rates over the next four to six quarters. It’s becoming increasingly clear that high tide conditions will persist for a long while, so shippers and carriers will...

https://www.freightwaves.com/news/truckload-market-tightness-to-continue-us-xpress-report-says

Will capacity return to trucking?

Chart of the Week:  ACT Research Class 8 Truck Orders, Outbound Tender Rejection Index – USA SONAR: ORDERS.CL8, OTRI.USA

If the COVID-19 pandemic has taught us anything, it is not to rely too heavily on the patterns and connections that helped us understand the world around us prior to the outbreak. While some connections remain intact – like tighter capacity leads to higher rates – there are many whose relationships have become disconnected. Key ones include between some of the macroeconomic...

https://s29755.pcdn.co/news/will-capacity-return-to-trucking

June Class 8 truck orders rebound to four-month high

Volvo VNR on highway

Preliminary new Class 8 truck orders in North America rose 139% in June over May, following rebounding freight rates to set a four-month high. But industry experts do not expect a sustained comeback until later this year.

The 16,000 orders more than doubled combined bookings in April and May. That’s when shelter-in-place regulations led to a near collapse of the economy. Orders exceeded the same month a year ago by 23%, according to ACT Research,

“North American Class 8 net orders were up against...

https://s29755.pcdn.co/news/june-class-8-truck-orders-rebound-to-four-month-high

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