Preliminary North American Class 8 orders see major September gains

August preliminary Class 8 truck orders saw some gains, according to data recently by freight transportation consultancy FTR and ACT Research, a provider of data and analysis for trucks and other commercial vehicles, respectively.

FTR reported that September preliminary North American Class 8 orders—at 32,000 units— topped August by 66% and rose 160% annually, on the way to the highest monthly tally going back to October 2018. And it also added that Class 8 orders, for the last 12 months, are at 197,000 units.

The firm said that this data speaks to have renewed confidence, with the stronger than expected economic and freight recovery spurring on equipment orders. What’s more, it noted that the orders are a combination of growing replacement demand and some expansion demand in those regions where capacity is tightening, with the uncertainty about the pandemic continuing to fade, as more sectors of the economy reopen and consumer mobility increases.

“The Class 8 truck market continues to recover faster and better than expected,” said Don Ake, vice president of commercial vehicles for FTR, in a statement. “This strong order volume suggests fleets believe there will be steady freight growth going forward. Rates have improved, so carriers have the cash, and now they also have the confidence. When you combine those two factors, orders tend to surge. There was considerable pent-up demand in the market, as orders sank in the March to May time period. So, trucks that would have normally been ordered then are being ordered now, since much of the risk has passed. The order volume is very close to August’s trailer orders; therefore, it appears that the fleets took care of their trailer needs first, and then caught up to the truck side in September. Ordering for 2021 deliveries will begin in earnest this month, so the industry has solid momentum going into the fall ordering season.”

Ake also observed that these figures come with the caveat that it is still a risk-filled environment, with some of that uncertainty having intensified recently.

“But many fleets are focused on future business prospects and are willing to assume the short-term risks for long-term gains,” he said.”

ACT Research reported that preliminary September North American Class 8 net orders—at 31,000 units—rose 60% compared to August and 145% compared to September 2019.

“As orders rebounded to relatively healthy levels early in Q3, most of those orders were targeted at filling open 2020 build slots,” said Kenny Vieth, ACT’s President and Senior Analyst, in a statement. “With most of that work done by the end of August, we suspect the lion’s share of September’s orders were booked into 2021.”