Class 8 net orders remain weak in September

NASHVILLE, Ind. -- The Class 8 market remained soft in September, with preliminary net order numbers reported by FTR Associates coming in at the lower end of expectations.

FTR reported preliminary Class 8 truck net orders at 15,205 units, down slightly from August. September orders were 35% below last September, and concluded the weakest quarter since Q3 2010.

The annualized rate for net orders placed in the third quarter is just 174,400 units, FTR reported.

“September orders were at the low end of our expectations so they were somewhat disappointing,” said Eric Starks, FTR president. “We wouldn’t have been surprised to see three to four thousand more units ordered in the month, but the reported numbers were certainly within the range we expected to see, albeit softer than we would have liked. Even with sluggish freight levels, we still expect to see a seasonal bounce in orders during Q4, but likely not at levels that many in the industry are hoping to see.”

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Class 8 orders remain weak in July; analyst blames lack of confidence

COLUMBUS, Ind. -- As expected, Class 8 net orders were weak in July with build rates exceeding the pace of incoming orders.

The most recent data published by ACT Research in its State of the Industry report, showed consistent Classes 5-7 orders but continuing weak orders for Class 8 trucks.

“Concerning the heavy-duty market, we view the unusual pairing of weak orders and low cancellations as a reflection of today’s bifurcated truck market,” said Kenny Vieth, president and senior analyst at ACT. “To that end, we believe confidence is at a key component of the order pullback across a large swath of carriers.”

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Ground transportation costs remain constant, base rates fall in September

TORONTO, Ont. -- The cost of ground transportation for Canadian shippers in September remained the same month-over-month, according to the latest figures from the Canadian General Freight Index (CGFI).

However, the Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by .1% for the same period. It was the first decrease in base rates since March.   

Offsetting the decrease in base rates were slight increases in both average fuel surcharges assessed by carriers and other accessorial charges. During this period, fuel surcharges assessed by carriers equated to 20.16% of base rates, up from 20.1% in August. The combined effect of lower base rates and higher accessorial charges resulted in no change in average transportation costs for Canadian shippers, according to the report.   

"The slight decrease in Base Rates was predominantly driven by reduced costs in the transborder truckload sector," said Doug Payne, president and COO of Nulogx. "Over the summer, these movements were subject to significant cost increases and it is possible that these are easing somewhat."

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