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April Class 8 truck orders were down compared to March as well as to the previous year, according to preliminary data, but the drop was not unexpected.
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Net trailer orders in March saw an incremental increase over February as OEMs are still increasing build to meet the surge in orders from late last year.
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The FTR Trucking Conditions Index for February fell slightly in February to a reading of 7.4, reflecting a softening capacity utilization caused by fluctuating diesel prices and the suspension of controversial provisions of the 34-hour restart.
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While some may complain that truck freight levels haven’t taken off like a rocket since the end of the Great Recession, the fact is they have posted solid improvements, according to Jonathan Starks of the freight forecasting firm FTR -- and could be headed for a new peak.
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Net orders for Class 8 Trucks hit a six-month low, recording 24,780 units, in March, according to preliminary data from FTR. This is the lowest level since September 2014 and the first time Class 8 orders have fallen year-over-year since January 2013.
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Refiners are buying trucks to fetch more desirable crude oil than what they’re getting through pipelines.
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February trailer orders dropped well below January figures as backlogs for orders fell for the first time in six months, according to the latest FTR report.
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FTR has announced that registration is open for its first "virtual conference." The event is scheduled for April 7th and will include discussions and question-and-answer sessions on important topics in trucking.
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Intermodal freight movements are finally recovering since a tentative agreement was worked out about three weeks ago between West Coast Port workers and shipping companies, but diversions of freight from this part of the country are expected to continue.
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The FTR Trucking Conditions Index for January dropped 34% month to month to a reading of 7.8. Despite the drop, the index is only slightly below the high average score from 2014.
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