FTR Reports Weak July Preliminary Class 8 Orders Impacted by High Cancellations

08.03.16 | FTR

FTR releases preliminary Class 8 net orders for July at 10,400 units, 56% below a year ago and the weakest month since February 2010.  Several significant order cancellations resulted in net orders falling 19% below June and being below expectations.  Individual OEM performance was mixed, depending on the number of cancelled orders.  Mexico orders were relatively strong.  July activity further eroded annualized order rates, now at 210,000 for the past twelve months. 

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Don Ake, Vice President of Commercial Vehicles at FTR, commented, “Usually there are a low number of cancellations in July, but not this year.  The high cancellations are likely the result of fleets placing large orders at the end of 2015, for delivery a year out.  OEMs are trying to confirm Q4 production, with some orders shaking out of the backlog as a result.”

“Without the cancellations, July orders would have been similar to June.  Freight growth remains sluggish, so fleets are backing off expanding the number of trucks.  They are expected to continue to replace older units in the short-term, however. Orders should increase some in August.”

Final data for July will be available from FTR later in the month as part of its North American Commercial Truck & Trailer Outlook service. To contact FTR, send an email to [email protected] or call (888) 988-1699 ext. 1.

For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation, as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.

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