Truck Orders Go Up In September 2020, To The Relief Of Fleets
The latest data from the FTR Transportation Intelligence and American Commercial Transportation Research Company, LLC, had good news for trucking companies in North America, like Titan Transline, as they reported an increase in Class 8 orders, making for the highest number in that classification since October 2018.
September order activity went up 55% from the prior month, and 160% from the same time in 2019, according to FTR. FTR and ACT agree that there was a significant upsurge, but there are slight discrepancies in their numbers.
ACT President and Senior Analyst Kenny Vieth says that orders bounced back to relatively healthy levels in Q3 2020, with most of them aimed at filling the open slots in 2020. Most of these were dealt with in August, leaving September 2020’s numbers to fill in 2021’s bookings.
Class 8 wasn’t the only market to see some good news, as the North American trucking industry, in general, saw a bit of a bounce back from recent events, to the relief of companies like Titan Transline and truckers in the region. The ACT reports that the Class 5-7 markets saw 26,900 units ordered, which is a 37% increase from August 2020, and a 48% increase from September 2019.
Vieth explains that heavy-duty freight rates are symbiotically linked with medium-duty demand, meaning that a shift in one side is felt in the other. They add that the shift in consumer spending from services to goods is the driving force behind this boost to local trucking services, and both heavy-duty and medium-duty were the lucky beneficiaries.
FTR notes that this recent upsurge has given fleets across North America confidence, with the stronger-than-expected recovery resulting in more equipment orders.
FTR Vice President Commercial Vehicles Don Ake says that the Class 8 market is recovering faster than expected, and that the recent upsurge in order volume means that fleets are looking to the future favorably.
The market, Ake explains, had pent-up demand due to order volume dipping in March-May, meaning that orders that would’ve been made then are being made now, as the risk goes down to more manageable levels. The order volume, notably, is close to August’s trailer order volume, implying that fleets focused on dealing with trailer needs.
Orders for 2021 delivers, Ake added, begin in earnest in October 2020, so the trucking industry has good momentum moving forward.