Class 8 orders remained stellar in November, according to data from two firms, signaling that fleets are preparing themselves for more freight and tighter capacity in 2015, according to FTR’s Don Ake.
Class 8 orders in North America came in at 40,560 in the month, according data from FTR, marking the second consecutive month above 40,000. Class 8 orders in the last 12 months total 363,000, FTR says.
“On the heels of October’s second best ever Class 8 order month, November follows with the fifth-best month on the all-time list,” says Kenny Vieth, ACT’s President and Senior Analyst. “The 41,000 NA Class 8 net orders in November (37.7k SA) represent the convergence of a number of trends that continue to drive healthy order activity. These include rising economic activity, pent-up demand, strong new equipment fuel economy gains, and most importantly, rising freight rates, which bolster carrier profitability.”
FTR’s Ake, however, says orders may drop off within the next few months as fleets have half of their expected 2015 truck requirements already in backlog.
Ake added, though, that truck utilization remains high and the industry needs more trucks. “Confidence in the economy and positive factors in the trucking sector are motivating fleets to place orders very early in this cycle. Trucking capacity remains tight and fleets continue to need more trucks.”
ACT reported that Class 5-8 orders in the last 12 months have been the strongest since the 12-month period ending December 2006.
