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Class 8 Orders Leap to Second-Highest Level Ever


kscarbel2

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Transport Topics  /  February 5, 2018

North American Class 8 orders in January surged to the second-highest total ever, analysts reported, pointing to new tax breaks and high freight rates as the reason.

The orders were 48,700, according to one analyst, which cited a preliminary total that it would revise once the truck makers issued the final data in mid-February.

Another research company, FTR, pegged the January volume at 47,200.

In either case, both figures surpassed all other months except March 2006, when the total was 52,194. That period was when fleets rushed to order trucks ahead of more costly models coming in 2007 that reduced tailpipe emissions but were also less fuel efficient.

One analyst cited recent tax reform as the most likely reason for the unexpected increase in orders by fleets of all sizes.

“There is just nothing else that makes sense,” he said.

The Tax Cuts and Jobs Act signed into law in December allows full expensing of most types of equipment placed into service between Sept. 27, 2017, and Dec. 31, 2022, according to the American Trucking Associations.

Meanwhile, capacity has tightened but spot rates have begun to edge down, suggesting the market is finding an equilibrium, he said.

But capacity continues to remain historically tight, FTR Chief Operating Officer Jonathan Starks said in a company release.

“And truckers are taking advantage of the opportunity with spot rates on the Truckstop.com load board up 30% year-over-year in January,” Starks said. “Near-record levels can’t last for long, but orders could stay quite elevated throughout the spring.”

North American Class 8 orders for the past 12 months have now totaled 316,000 units, according to FTR.

 

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38 minutes ago, kscarbel2 said:

Mack brand dealers are not participating in the upswing, because it continues to take six months for distributors to order/receive a truck, and similarly spec'd competitor trucks continue to be as much as $10,000 cheaper.

Wow! Is Mack doing anything to solve that? I have heard this before from other people too.

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2 hours ago, kscarbel2 said:

Mack brand dealers are not participating in the upswing, because it continues to take six months for distributors to order/receive a truck, and similarly spec'd competitor trucks continue to be as much as $10,000 cheaper.

Whats the cause? Paper work, lack of parts and assemblies or just indifference?

"OPERTUNITY IS MISSED BY MOST PEOPLE BECAUSE IT IS DRESSED IN OVERALLS AND LOOKS LIKE WORK"  Thomas Edison

 “Life’s journey is not to arrive at the grave safely, in a well preserved body, but rather to skid in sideways, totally worn out, shouting ‘Holy shit, what a ride!’

P.T.CHESHIRE

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6 hours ago, 41chevy said:

Whats the cause? Paper work, lack of parts and assemblies or just indifference?

Due to excessively lean manufacturing, and the high margins demanded by a financially struggling Volvo Group on trucks, spare parts......across the board.

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