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Trailer net orders rebounded in November, as large fleets place orders and OEMs began to solidify their 2022 production plans.
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The low order total in November is not due to any lack of demand, but rather due to the uncertainty in the supply chain.
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For trucking companies struggling to find drivers, these numbers might sound like nonsense. And in fact, the truth is far more complicated.
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Strong market conditions and extraordinary financial assistance from Washington have sparked an unprecedented surge in the number of newly authorized trucking companies — especially small ones.
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October is the traditional start of the fall ordering season for the following year. However, this is far from a normal year, as October trailer order numbers show.
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Freight rates continued to strengthen in September, but freight volume and capacity utilization numbers were weaker, according to FTR’s Trucking Conditions Index.
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Supply chain constraints and component shortages continue to put pressure on North American Class 8 orders, with orders down about 39% year-over-year.
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In September, trailer orders improved over 100% month-over-month to between 28,127 and 28,300 units, ACT Research and FTR reported.
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September’s Class 8 order number is not a true indicator of 2022 truck demand, FTR’s Don Ake said, because OEM are delaying entering order until the health of the supply chain improves.
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Given the ongoing kinks in the global supply chain and the rise in domestic freight demand, OEMs won’t catch up with demand until 2023, according to FTR's Don Ake. That’s why FTR’s equipment outlook calls for pent-up demand to continue into 2022 — and possibly into 2023.
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