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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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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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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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The COVID-19 pandemic continues to affect all aspects of the industry, and while one conference is going virtual, another has decided to move forward with an in-person meeting.
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FTR’s April Trucking Conditions Index dropped to its lowest level ever at -28.66, reflecting the effects of the COVID-19 pandemic.
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