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FTR Reports North American Class 8 Orders for July Hit All-Time High

08.03.18 | FTR


 FTR reports that preliminary North American Class 8 orders for July hit an all-time high of 52,250 units, just surpassing the previous record of 52,194 orders in March 2006.  Class 8 orders were tremendous for the U.S. market, with most OEM’s achieving elevated levels.  Orders were up 25% m/m and 187% y/y. Orders have been astounding in 2018.  Five of the highest twelve order months ever have occurred in the first seven months of this year.  North American Class 8 orders for the past twelve months have now totaled 445,000 units.

Fleets are desperate to get new trucks, but supply is limited. Because fleets are frustrated by the current situation and are uncertain when they can receive trucks, they are placing a large volume of orders in hopes of getting some deliveries at some point in the future. In essence, there is a truck shortage. Freight growth is robust and industry capacity is extremely tight. OEM’s have been hindered because numerous parts and component suppliers have not been able to produce and deliver on time. 

Click here to view the latest release and an interactive graph of the Class 8 Orders >

 

Don Ake, FTR vice president of commercial vehicles, commented, “The supply chain issues began around March.  OEM’s started falling behind in deliveries to fleets in April.  Deliveries did improve a bit in June, but most OEM’s are still operating in catch-up mode.  It is uncertain when suppliers will be able to improve delivery times and for OEMs’ to ship all orders on time.  Realistically it may take up to a year for everyone to catch up.”

“This is a unique situation where strong demand is meeting limited supply.  Prices can’t rise enough to alleviate the situation.  Therefore, the market is responding by placing an immense number of orders into the backlog.  Fleets are reserving places in line, so they can get the maximum number of trucks in the future.  It is a bizarre occurrence and it will not be resolved soon.  Conditions may be abnormal, but they are abnormally good.”



Read Don Ake's recent blog post exploring Class 8 Orders: Bottleneck In The Supply Chain Is An Economic Threat > 

Final data for July will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service. To contact FTR, send an email to sales@ftrintel.com or call (888) 988-1699 ext. 1 and follow us on Twitter @FTRintel.

Click here to view a sample report >


About FTR
For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation, as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.