Early trailer order numbers from FTR Intelligence reflect an impressive showing for the month of May, despite an expected seasonal decline.
The experts at FTR crunch the spot freight numbers to analyze the effect this year's inspection blitz focusing on hours of service affected trucking capacity.
May was another strong month for new Class 8 truck orders as fleets work to keep up with increased demand in a tight capacity environment.
FTR’s Trucking Conditions Index for March fell more than five points from the previous month’s record high. But it remains indicative of a favorable environment for carriers.
Mixed economic signs aside, trucking will remain strong for the remainder of the year, FTR economist Eric Starks told attendees at HDT's Heavy Duty Trucking Exchange event in Scottsdale, Arizona.
April trailer orders are projected to decline as much as 20% compared to the previous month, following seasonal ordering patterns, according to a preliminary report from FTR Intelligence.
Although the April 1 start to “hard enforcement” of the electronic logging device mandate does not seem to have had a huge effect on trucking capacity (except perhaps in flatbeds), there are a number of other factors that are working to keep capacity tight and rates high, likely at least until late this year, according to FTR.
Early reports are showing that heavy-duty truck orders likely dropped as much as 12,000 units from March to April, but despite that being the largest single-month decline since 2011, analysts are still calling the market for Class 8 equipment hot.
FTR’s Trucking Conditions Index for February hit its highest reading ever, reflecting an unmatched positive environment for carriers.
Early reports from FTR on trailer order activity for March show that while orders declined by 16% from the month before, they remain historically strong.