Preliminary orders for Class 8 heavy duty trucks in North America have fallen below 10,000 units in July, for the first time since 2010.
It has been reported that orders of just 9,800 units were inked, noting carriers appear to be in no rush to grab 2020 build slots. July orders were down 24 per cent from June and 82 per cent year on year.
Fleets continue to take a wait and see approach to 2020 equipment with higher equipment costs, uncertain demand, and enough available capacity in the market potentially keeping order activity at bay.”
Some analysts published a preliminary count of 10,200 units, which according to the numbers is down 21 per cent from June, and marks the lowest monthly tally since February 2010.
“Weak freight market and rate conditions across North America and a still-large Class 8 backlog continue to bedevil new Class 8 orders. Though, with OEMs opening their new model-year order books in June and July, order weakness is increasingly the story of an over-capacitized Class 8 fleet,” said one analyst.
“Seasonal adjustment boosts July’s intake to 12,100 units, bringing the ‘worst since’ comparison measurably closer, October 2016,” they added.
Regarding the medium duty market, the analyst explained, “While not as weak, and after a seven-year positive run, the medium duty segment is looking increasingly tired, with July’s preliminary Classes 5-7 net orders at 15,900 units, down 20% year-over-year and 18 per cent through year-to-date July.”