Trucking

Class 8 track orders slide in May

Due to the seasonal slowdown and the manufacturer’s attention when booking orders for more Class 8 trucks than can be produced in May, there is little change in the status of the new equipment.

According to ACT Research, the tentative estimate for 14,000 orders has actually risen slightly given seasonality. Orders usually decrease from April to May.

However, ACT’s vice president and senior analyst Eric Crawford said Russia’s invasion of Ukraine, interest rates, potential recessions, long-term backlogs, and supply chain constrained production uncertainties. , Said that the trend for new orders remains narrow.

“OEMs usually haven’t opened their build schedule for the previous year yet, so it’s time for orders to tend to be seasonally weak,” Crawford said.

Ordering a class 8 track like concert ticket

FTR Transportation Intelligence fixed its May provisional order to 13,300, down 13% from April and down 43% year-on-year. On a 12-month rolling basis, Fleet ordered 270,000 units. May totals exceeded November 2021 as the last month of the cycle.

“The supply chain has improved slightly in the last few months, but the turmoil in China and Russia has stagnated some of that progress,” said Don Ake, FTR Vice President of Commercial Vehicles. .. “OEMs are not confident that they will be able to increase production in the second half of this year. Therefore, no further orders will be accepted.

“It’s like selling tickets for a popular concert. Initially, there are a lot of vacant seats, so sales are high. But in the end, there are fewer seats to sell, so fewer tickets are sold.” Said Ake. “In the summer months before the start of next year’s cycle, orders could even fall below 10,000.”

OEMs are quickly running out of 2022 build slots. Even if freight demand is starting to slow due to supply chain disruptions, we cannot build enough trucks to meet the demand. Few orders are booked in 2023 due to soaring, fluctuating and difficult accurate quotes for goods and other components.

Bright evaluation

Still, Paccar CEO Preston Feight gave a bright rating on Wednesday’s Investor Day.

“The market will be longer and stronger,” Fight said, noting that demand could stagnate and orders could rise before the high emission controls came into force in 2024. Delivery of 44,000-48,000 trucks worldwide compared to 43,000 in the first quarter.

Chip shortage could cool April class 8 truck orders

Never be fooled: Manufacturers Avoid Overbooking Class 8 Orders

Ordering Class 8 Tracks in February: “You can’t always get what you want”

Click here for more Freight Waves articles by Alan Adler.

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https://www.freightwaves.com/news/may-class-8-truck-orders-slide-seasonally-and-build-slots-evaporate Class 8 track orders slide in May

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