Connect with us

For Business

Preliminary Class 8 order numbers show 26 percent decline in January

Published

on

FTR said the low Class 8 order number was not entirely unexpected, as the great majority of fleets already have all their orders in for 2019 and don’t need to place any more orders for a while. (Courtesy: NAVISTAR)

Preliminary North America Class 8 net order data booking down 26 percent in January, according to two North American firms that track and analyze such data.

ACT Research showed the industry booked 15,800; FTR reported 15,600 bookings.

Both figures represent a decline of 26 percent from December.

ACT’s figure was 68 percent below what it reported in January 2018; FTR’s figure was 67 percent below a year ago.

FTR said bookings in January were the lowest for the month since 2010.

“With near-record backlogs in both the medium and heavy-duty vehicle markets, order activity continued to moderate in January. During the month, North American Classes 5-8 vehicle orders fell to an 18-month low 39,200 units,” said Kenny Vieth, ACT’s president and senior analyst. “Regarding Class 8, recall that January 2018 marked the point at which orders went vertical. We view this January’s order softness as having more to do with pulled-forward orders and a very large Class 8 backlog than with the current supply-demand balance. Softening freight growth and strong Class 8 capacity additions suggest that the supply-demand balance will become a story in 2019, but January seems a premature start to that tale.”

FTR said the low Class 8 order number was not entirely unexpected, as the great majority of fleets already have all their orders in for 2019 and don’t need to place any more orders for a while.  Backlogs are expected to fall, but should remain over 70 percent higher than a year ago.  Class 8 orders for the past 12 months have now totaled 402,000 units.

“Orders had to fall below 20,000 units at some point. There were record breaking orders placed last July and August, and this is the payback for that volume. Even with the weak January numbers, over 330,000 trucks have been ordered in the last nine months, so demand for trucks in 2019 remains strong,” said Don Ake, FTR vice president of commercial vehicles. “This is more of a resting point than a turning point. There is an enormous amount of orders in the backlog. The key will be how many of these trucks get built and when. The fundamentals of the economy and freight growth remain solid, so there is no reason to panic. The production rates the first few months of the year will be a better indicator of Class 8 demand than current orders are. We do expect the cancellation rate to remain elevated, as fleets move their orders around in the backlog. Order rates are expected to remain suppressed for a few months, but build rates and retail sales are forecast to climb.”

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

For Business

4 ex-Pilot Flying J workers get probation in fraud plot

Published

on

Headquartered in Knoxville, Pilot Flying J has more than 750 retail locations in 44 states, Roadside assistance available at over 135 locations nationwide and growing as part of its Truck Care program, 44 Goodyear Commercial Tire and Service Centers, and 34 Boss Shops.(Courtesy: PILOT FLYING J)

CHATTANOOGA, Tenn.  — Four former account representatives from nation’s largest fuel retailer will serve probation for their roles in a plot to cheat trucking companies.

ex-Pilot Flying J employees Holly Radford, Lexie Holden, Janet Welch and Ashley Judd were sentenced Wednesday. They admitted to skewing the books to cover up the fraud prosecutors say was committed by their male bosses. Nearly 20 former workers were accused in the $56.5 million scheme.

The judge also ordered Radford, Welch and Judd to do community service. He exempted Holden because she works full-time and runs a business.

Prosecutors say the company lured trucking companies with discounts on fuel, then shortchanged them.

The Knoxville-based company is controlled by the family of Cleveland Browns owner Jimmy Haslam and former Tennessee Gov. Bill Haslam.

Jimmy Haslam has long contended he knew nothing about the fraud scheme. Gov. Bill Haslam said he was not active in company affairs.

Continue Reading

For Business

ACT Research For-Hire Trucking Index: volumes up, but supply-demand balance loosens

Published

on

The January fleet purchase intentions reading indicated an uptick in equipment demand, with 53.7 percent of respondents planning to buy trucks in the next three months, up from 52.3 percent, seasonally adjusted, in December. (The Trucker file photo)

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index showed an improvement in freight volumes and truck productivity in January, after a soft finish to 2018. The Volume Index rose to 52.0 in January from 49.0 in December.

“The recovery in the Volume Index was offset by an increase in the Capacity Index in January, keeping the balance signal to the loose side,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “The past three readings have shown the loosest industry supply-demand balance in almost three years, since April 2016.”

The Driver Index was in negative territory, below the neutral 50 mark, at 47.2 in January 2019. “Based on fleet feedback, we added a question about the driver market in January 2018, and after a year, we are now able to start reporting on this metric,” Denoyer said. “The January 2019 reading, as well as the December 2018 reading of 47.0 were up significantly from the 38.6 recorded in January of 2018. The index has been below the neutral 50 level since we started asking the question last year. However, the rise in the index over the past year signals modest easing of ongoing driver constraints.”

The January fleet purchase intentions reading indicated an uptick in equipment demand, with 53.7 percent of respondents planning to buy trucks in the next three months, up from 52.3 percent, seasonally adjusted, in December.

“After record orders last year, this series should remain elevated as long lead-time truck orders are built and hit the highways,” Denover said. “Over the past 12 months, the Buying Index has averaged a strong 57.6% reading.”

ACT is a publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market.

For more information, visits .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continue Reading

For Business

dexFreight initiates early adopters program

Published

on

By joining the Early Adopters Program, companies will have exclusive access to early release versions of the dexFreight platform. (Courtesy: DEXFREIGHT)

SUNRISE, Fla. — dexFreight, providers of a decentralized, blockchain-based logistics platform, has launched the dexFreight Early Adopters Program for U.S. shippers, carriers, brokers, and forwarders.

“The dexFreight platform built on blockchain technology allows supply chain stakeholders to transact and collaborate more efficiently, transparently and securely,” said Rajat Rajbhandari, CEO and co-founder of dexFreight. “Through our Early Adopters Program, we will be using the real-world expertise of logistics stakeholders to evaluate new and advanced features of our platform that will be launched in the near future. We don’t want to develop in a vacuum, and we believe the dialogue with and feedback from early adopters is vital in creating a platform that helps the entire logistics community.”

The dexFreight Early Adopters Program is open to U.S.-based companies. By joining the Early Adopters Program, companies will have exclusive access to early release versions of the dexFreight platform. As members of the Early Adopters community, they will have the opportunity to interact with dexFreight’s development and product teams.

Early Adopters Program participants will have free access to the platform’s basic features for three months and to advanced features at no charge when they first become available, and then at a discounted rate, Rajbhandari said. They will receive early notifications about new features before they are offered to all platform users.

Basic features of the dexFreight platform include TMS/FMS integration, load and capacity matching, safety data, rate negotiation, accessorial selection, P&D scheduling, shipment tracking, navigation and communication, and payments built on blockchain technology from the ground up.

Plans for the platform include escrow services, tokenized invoices, rate forecasting, on demand warehouse, load chaining, fleet optimization, bid preparation and risk prediction features, as well as third party apps.

In October 2018, dexFreight completed its first blockchain-based shipment using smart contracts. The platform, an ecosystem of open source protocols, blockchain and machine learning technologies, allowed the shipper and carrier to directly connect, negotiate rates, and schedule pickup and delivery.

For more information, visit .

Continue Reading

Trending