Create a free Manufacturing.net account to continue

Report: Cancelled Truck Orders Spike In October

The already-struggling U.S. trucking industry is reportedly wary following an analysis that showed a sharp jump in cancelled orders for large trucks last month.

(AP Photo/Ted S. Warren)
(AP Photo/Ted S. Warren)

The already-struggling U.S. trucking industry is reportedly wary following an analysis that showed a sharp jump in cancelled orders for large trucks last month.

Findings from ACT Research showed that trucking fleets scrapped orders for 8,610 Class 8 trucks — the largest class that ships retail items — in October. The Wall Street Journal reported that was the highest level of monthly cancellations in more than 20 years.

The paper also noted that the numbers effectively negated about 10 percent of new large truck orders that were still awaiting production.

ACT's Jim Meil told the Journal that the increase could be tied to a few large cancellations rather than a broad industry pattern and noted that other economic indicators remained stable.

But larger gaps between orders and production, in general, mean that companies are confident about forthcoming demand for shipping; Meil acknowledged that the October cancellations are "a high number by any benchmark."

The analysis follows ACT's findings earlier this month that orders for new trucks fell by 46 percent last month compared to the previous October.

The trucking industry struggled for months due to sluggish demand and excess capacity, but industry observers were hopeful that the numbers for October — an important month for fleet operators' planning for the following year — would improve as trucking companies cut the number of big rigs on the road.

Instead, the Journal reported that the numbers could signal continued problems for truck manufacturers heading into 2017.

More