It’s more bad news for the American truck market with cancellations of heavy-duty truck orders reaching a two-decade high.
US truck makers have battled dwindling sales since late last year, but according to data from ACT research, buyers cancelled 8,610 orders for Class 8 trucks last month or 10.5 per cent of backordered units.
Fleet operators have held back on model upgrades and expansion plans as a result of lower shipping demands and falling freight prices.
According to principal at ACT Research, Jim Miel, the spike in cancelled orders is a major concern.
“More businesses and more customers out there who for one reason or another have lost faith in an increase to shopping demand. This is a high number by any benchmark,” he said.
“I don’t see anything different in terms of freight or an economic dynamic. Things were a little bit shakier for some of that intended business than the manufacturers thought back in the summertime.”
The downturn in the heavy-duty market has already impacted engine manufacturer Cummins and Miel warned there would be a concertina effect.
“The cancellations will indeed have some ramifications upstream to the supply chain,” Miel added.