Net orders for North American Class 8 trucks totaled 52,250 units in June, the highest monthly total ever, according to preliminary data from freight forecaster FTR Transportation Intelligence.
The record June orders represented a 25 percent increase from the previous month and a staggering 187 percent increase from June 2017, surpassing the previous all-time high of 52,194 orders set in March 2006.
FTR described the order activity so far in 2018 as “astounding,” noting that five of the 12 highest order months ever took place in the first seven months of this year.
“Fleets are desperate to get new trucks, but supply is limited,” the firm added. “Because fleets are frustrated by the current situation and are uncertain when they can receive trucks, they are placing a large volume of orders in hopes of getting some deliveries at some point in the future.”
The domestic U.S. truck market has seen demand outstrip available capacity for months now, causing prices to rise considerably, with some analysts labeling the current environment the tightest market since 2004, while others say it might be the tightest ever. According to the latest Cass Truckload Linehaul Index, domestic U.S. truckload rates jumped another 9.5 percent year-over-year in June, a third consecutive record increase.
Compounding matters further, Class 8 truck makers have been hampered by delays in delivery of parts and components.
Don Ake, vice president of commercial vehicles at FTR, said those supply chain issues began in March, causing manufacturers to fall behind in fleet deliveries in April.
“Deliveries did improve a bit in June, but most OEMs are still operating in catch-up mode,” he said. “It is uncertain when suppliers will be able to improve delivery times and for OEMs to ship all orders on time. Realistically it may take up to a year for everyone to catch up.
“This is a unique situation where strong demand is meeting limited supply,” added Ake. “Prices can’t rise enough to alleviate the situation. Therefore, the market is responding by placing an immense number of orders into the backlog. Fleets are reserving places in line, so they can get the maximum number of trucks in the future.
“It is a bizarre occurrence and it will not be resolved soon. Conditions may be abnormal, but they are abnormally good.”