March Class 8 truck orders reset to normalized demand

https://www.freightwaves.com/news/march-class-8-truck-orders-reset-to-normalized-demand

The ups and downs of Class 8 truck orders appear to be returning to a normalized pattern with manufacturers sitting on a healthy backlog of trucks to build.

Nearly all build slots are filled for 2023. That prompted slower order activity of 19,000 units in March, FTR Transportation Intelligence reported Tuesday.

Reduced order levels will continue through the summer, historically a weaker period for bookings. That normalcy was upended during the pandemic. Lower year-over-year orders in five of the past six months followed record bookings in September 2022.

High backlogs could be masking an order slowdown

“Given that backlogs are sitting at such high levels, it is difficult to ascertain if there is a fundamental weakening in the Class 8 equipment market,” FTR Chairman Eric Starks said in a news release. “Fleets continue to request equipment, and quote activity has been in line with past seasonal behavior.”

March orders declined 18% from February and 11% from March 2022. Order activity is in line with market expectations and running at a robust annualized rate of 340,000 units over the past six months, FTR reported. Class 8 orders totaled 301,500 on a running 12-month basis.

“The incoming order rate for March was 228,000 annualized, right in the sweet spot at replacement demand levels,” Starks said.