Preliminary June Class 8 net orders see sequential and annual declines

Preliminary June North American Class 8 net truck orders saw annual and sequential declines, according to data recently issued by freight transportation consultancy FTR and ACT Research, a provider of data and analysis for trucks and other commercial vehicles.  

FTR reported that preliminary June net orders, at 13,100 units, were off 33%, from May to June, and down 6% annually. The firm noted that over the last 12 months, Class 8 orders have totaled 273,700 units.

June’s orders are on the low side of normal market results, following a five-month stretch of sustained strength in orders averaging 25% higher annually, according to FRT.

What’s more, the firm explained that after averaging close to 18,000 units through the first quarter, Class 8 orders have continued to slow at a seasonally expected rate, with an average just below 16,000 units for most recent three-month period, with build slots for Class 8 trucks are being filled at what it called a steady, albeit slowing, pace.

Addressing June’s sequential decline in orders, FTR said it was in line with seasonal expectations. And the annual decrease represents the first one to date in 2024, with FTR calling it “relatively insignificant because it is modest and because of the strong order performance over the previous five months.” And while all OEMs had order declines, FTR said its preliminary data indicates that vocational market demand dropped more significantly.

“The levels seen in June are consistent with seasonal expectations, and the market is still performing at or above replacement levels for incoming orders,” said Dan Moyer, FRT senior analyst, commercial vehicles, in a statement. “Despite stagnant freight markets, fleets continue to invest in new equipment. Order levels are in line with historical averages and seasonal expectations, and market fundamentals remain little changed based on these preliminary orders.”

ACT data: ACT reported that preliminary North America Class 8 net orders fell 37%, from May to June, coming in at 14,800 units, while falling 12% annually.  

“Even in good years, Q2 typically delivers below-trend orders, while Q4 orders can trigger optimism at the bottom of the cycle,” said Kenny Vieth, ACT’s President and Senior Analyst, in a statement. “With the long bottom in freight volumes and rates continuing in the most recent data from DAT amid lingering market overcapacity, for-hire carriers’ financial performance has been dismal. Entering the historically worst time of the year for orders at the bottom of tractor buyers’ profitability cycle is producing results in line with expectations. At the same time, the brightest spot in the economy has been consumer services spending, helping to support steady medium-duty truck demand.”