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According to FTR, preliminary U.S. trailer orders for August increased 49% since July to 28,700 units, the biggest jump since October 2019.
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Pent-up consumer demand from COVID-19 shutdowns continues to buoy spot freight rates, but a still-weak manufacturing sector has experts at FTR cautioning that things could turn downward again.
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Although FTR’s Trucking Conditions Index for July was down approximately 25% from June’s 11.35 reading, trucking conditions continue to remain favorable for carriers as the recovery continues across the country.
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According to both ACT Research and FTR, preliminary North American Class 8 net orders for August increased, climbing to 19,500 and 20,500 units, respectively.
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The sudden, devastating economic collapse caused by the COVID-19 pandemic was so unprecedented, that even seasoned economists admit it’s difficult to predict what the recovery will look like.
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After a record low of -28.66 this past April, FTR’s Trucking Conditions Index jumped to a historic high to 11.35 for June, the highest in a decade.
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According to both ACT Research and FTR, preliminary North American Class 8 net orders jumped to around 20,000 units in July. This 27-28% increase effectively doubled the amount of trucks sold in July 2019.
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Looking at the spot market for the third week of July, it's hard to tell where we may be going, with rates and volumes hard to compare to typical seasonal trends due to COVID-19.
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While FTR’s Trucking Conditions Index reading for May made a comeback from a “worst-ever” level in April to a reading of -5.19, it is still not doing well from a historical perspective.
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Improvements in industrial production and housing may help drive a truck freight recovery, but spikes in COVID-19 cases in many parts of the country and questions about what Congress may or may not do leave a lot of uncertainty in the forecast, according to analysts at FTR.
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