FTR reports that preliminary North American Class 8 net orders remained impressive in February for the fifth consecutive month coming in at 44,000 units, +3% m/m, and +209% y/y.
February 2021 was the second-highest total ever for the month of February.
“There is tremendous pent-up demand for trucks. There are severe bottlenecks in the supply chain involving computer chips, wiring harnesses, and a whole host of various parts,” said Don Ake, vice president of commercial vehicles for FTR. “OEMs are under intense pressure to deliver as many vehicles as they can, as soon as they can. The tight capacity has caused spot rates to spike from already elevated levels. Contract rates are rising also. Therefore, fleets have plenty of cash to spend. They desperately need trucks, so they are ordering at near-record levels.
“The supply chain is so dysfunctional right now and there are so many parts affected, it is difficult to predict when the logjam breaks loose. The vaccine should help component manufacturers find more workers. There are also lengthy waits at the ports causing delays in imported parts,” he continued.
Medium-duty Classes 5-7 demand, with orders at 25,400 units, slid 4% sequentially but were still up 12% compared to last February, according to ACT Research.
“The shift in consumer spending from experiences to goods continues to support providers of local trucking services, as e-commerce has grown by leaps and bounds in the pandemic economy,” said Kenny Vieth, ACT’s president and senior analyst.
