July Class 8 orders lowermost since 2010

Preliminary orders for Class 8 trucks in North America fell below 10,000 units in July, for the first time since 2010.
FTR reported orders of 9,800 units, noting carriers appear to be in no rush to grab 2020 build slots. July orders were down 24% from June, according to FTR, and 82% year-over-year.
“Fleets continue to take a wait and see approach to 2020 equipment,” said Jonathan Starks, FTR’s chief intelligence officer. “Potentially higher equipment costs, uncertain demand, and enough available capacity in the market are keeping order activity at bay.”
ACT Research published a preliminary count of 10,200 units, which according to its numbers is down 21% from June, marking the lowest monthly tally since February 2010.
“Weak freight market and rate conditions across North America and a still-large Class 8 backlog continue to bedevil new Class 8 orders. Though, with OEMs opening their new model-year order books in June and July, order weakness is increasingly the story of an over-capacitized Class 8 fleet,” said Kenny Vieth, ACT’s president and senior analyst.
“Seasonal adjustment boosts July’s intake to 12,100 units, bringing the ‘worst since’ comparison measurably closer, October 2016.”
Regarding the medium duty market, Vieth explained, “While not as weak, and after a seven-year positive run, the medium duty segment is looking increasingly tired, with July’s preliminary Classes 5-7 net orders at 15,900 units, down 20% year-over-year and 18% through year-to-date July.”