Coronavirus makes a dent in March truck order numbers

Coronavirus makes a dent in March truck order numbers

Preliminary North American Class 8 net orders in March fell to 7,800 units, down 45% from February and 51% lower than a year-ago comparison, according to ACT Research.

According to FTR, a significant number of fleets canceled orders previously placed due to the sharp and sudden downturn in economic conditions.

Uncertainty over the duration of the COVID-19 crisis is limiting orders to short-term, definite needs. FTR expects orders to stay near the 10,000-truck mark for a few months until economic activity regenerates. Class 8 orders have totaled 170,000 units over the past twelve months.

“The only good news here is that the number was still positive despite the high number of expected cancellations,” Don Ake, FTR’s vice president for commercial vehicles. “The gross order number is probably higher than 10,000 trucks, which means at least some fleets need more vehicles. A few carriers are doing well in the short-term, depending on the region and the type of freight being hauled.”

RELATED: Listen to our recent podcast interview on the state of the truck market with ACT’s Tim Denoyer and FTR’s Don Ake here.

ACT had March’s Classes 5-7 net orders at 14,700 units, down 36% from February and 31% from year-ago levels.

“Supply-side restocking on goods from China and demand-side restocking to support the surge in consumer staples actually created a positive, if temporary, inflection in freight rates,” said Kenny Vieth, ACT’s president and senior analyst. “However, increasingly bad news on the COVID front through the month and manufacturing beginning to shutter at the end of March were a heavy weight on an already over-capacitized industry operating a very young fleet.”

Regarding medium-duty activity in March, he noted, “After a reasonably buoyant February, the medium-duty market felt the impact of COVID-19, if with less severe symptoms than Class 8. It is important to remember that March marks the beginning of the peak order season for medium-duty vehicles.”

You May Also Like

Class 8 orders strong in February

Even when seasonally adjusted, ACT says preliminary order numbers for February are up 5% over January.

ACT-Class-8-Feb-truck-orders

According to the latest numbers from ACT Research, preliminary North America Class 8 net orders were 27,700 units, up 600 units from January and 16% from a year ago. With the fourth-largest seasonal factor of the year at 8%, seasonal adjustment reduces February’s Class 8 intake to 25,600 units, up 5% from January.

“Weak freight and carrier profitability fundamentals, and large carriers guiding to lower capex in 2024, would imply pressure in U.S. tractor, the North American Class 8 market’s largest segment,” said Kenny Vieth, ACT’s president and senior analyst. “While we do not yet have the underlying detail for February order volumes, Class 8 demand continuing at high levels again this month suggests that U.S. buyers continue as strong market participants.”

Kenworth delivers 15-liter natural gas-powered truck to UPS

The truck is equipped with the Cummins X15N, which Kenworth says will meet CARB and EPA Requirements for both 2024 and 2027.

Kenworth-delivers-CNG-truck-to-UPS
ACT Research: 2024 could see trucking recovery

Despite trucking demand remaining weak, ACT Research says imports and international data indicate positive trends in 2024.

ACT-for-hire-index-Jan-24
Navistar progressing toward autonomous hub-to-hub transport

Autonomous truck testing is underway, and the company expects customer pilots to be delivered later this year.

Navistar-Autonomous-partnership-Plus-international-truck
FTR Trucking Conditions Index falls in December

FTR says the drop was mostly due to higher capital cost and a deterioration in freight rates, a trend that could stretch into 2024.

FTR-TCI-december-2023

Other Posts

Scania reports 2023 growth in sales, progress on sustainability

The company says sales and performance are increasing as they move toward the goal of electrification, but there are challenges along the way.

SCANIA-Logo-vector
Fullbay: Repair shop sales and labor rates rose in 2023

A new report shows that counter sales and labor rates rose significantly in 2023 from the previous year.

Fullbay-TMC
ACT Research: Trailer orders dip as cancellations climb

Preliminary data for net trailer orders in January seems to follow a continued softening trend, according to ACT Research.

ACT-Research-Trailer-Net-Orders-down-Cancellations-up-Jan-2024
Good News! Parts, labor costs fell slightly Q4 2023

Decisiv, TMC Benchmarking Report shows trend reversal from previous quarter.

Decisiv-TMC-Benchmarking-Report-1400