Trucking Economic Indicators: Class 8 Orders and Shipper Conditions Analyzed
Class 8 Truck OEMs and the Backlog Situation
Class 8 truck OEMs are yet to fully open their 2024 orderboards, while strong production levels continue to eat away at the backlog. Shippers continue to benefit from favorable conditions.
July Class 8 Truck Orders Exceed Expectations
Preliminary data from FTR and ACT Research revealed that July saw Class 8 truck orders surpassing expectations. Despite an 8% pullback from June, there was a remarkable 25% year-over-year increase.
Backlog and Order Trends
FTR reports that the recent order volumes remain below replacement demand, indicating continued weakness. However, the backlog continues to decrease as fleets await the opening of 2024 build slots.
Seasonal Patterns and Order Placements
July is typically the low-water mark for monthly orders, as confirmed by ACT Research. The backlogs for both medium-duty Classes 5-7 and heavy-duty Class 8 markets are essentially full, contributing to constrained order flows.
Outlook for the Near Future
With build slots for 2023 already filled and 2024 order boards yet to open, the situation adds pressure to increase production through the end of the year. However, the expectation is that orders will not fall much further in the near term.