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THETRUCKER.COM
b Sales from page 17 b
30.9% of new Class 8 sales with 5,219 sold,
up 5.1% from February and a decline of 10.8%
over March 2019 sales.
One area where the COVID-19 pandemic
impacted truck sales was in the number
of North American orders for Class 8 units,
which plummeted to just 7,610 in the month of
March. That’s a 46% decline from 14,100 orders
in February. Compared with 15,717 orders
in March 2019, the decline grows to 51.6%.
According to Vieth, however, buyers were
already slowing their ordering in March 2019,
a response to the excess capacity in the market
due to overbuying in 2018. As an example,
orders for new Class 8 trucks in March 2018
totaled a whopping 46,600, more than six times
the orders placed in March of this year. On a
percentage basis, that works out to a decline
of 83.7%.
Of the new truck orders already placed,
5,800 were canceled in March. That’s an
18-month high, according to Vieth.
“We’ve been in a period of extremely low
cancellations, but the March cancellations were
indicative of concern over the impact of the
pandemic on the economy,” he said.
Used truck sales began to see the impact
of the pandemic in March as well. According
to ACT Research’s State of the Industry: U.S.
Classes 3-8 Used Trucks publication, overall,
sales of used trucks declined 8% compared to
February. In a press release accompanying the
publication, Steve Tam, ACT vice president,
said, “In normal times, sales increase around
15% from February to March, but these are not
normal times, and the disconnect is likely the
result of COVID-19.”
Peterbilt was the only major manufacturer
to sell fewer new Class 8 trucks in March than
in February, according to data received from
Wards Intelligence (wardsintelligence.com).
The company reported sales of 2,247 in March
compared to 2,415 in February, a decline of
168 (7.0%). Compared to March 2019, when
3,403 trucks were sold, sales declined by 1,156
(34.0%). For the year to date, Peterbilt lags
17.6% behind its 2019 pace for the first three
months with sales of 7,331 compared to 8,901.
Kenworth fared better with sales of 2,716
in March, up 12.0% from 2,415 sold in February.
Compared to last March when 3,147 units
were sold, sales declined 13.7%. For the first
quarter of the year, Kenworth sales of 7,218 are
b Nuclear from page 18 b
passed, the bill would force many small carriers
to cease operations under the weight of
increasing insurance premiums.
To date, Rep. Cartwright’s bill has not
gained traction, possibly in part to Rep. Cartwright
history as an attorney with a reputation
for suing freight carriers. His family still operates
a law firm, so in debate, the question of
conflict of interest would weigh heavily on the
bill’s chances of advancing. For many, Rep.
Cartwright’s bill will be viewed as a means
of providing “reptile” attorneys access to the
riches held in every tractor-trailer on the road
— rolling ATM machines, if you will. Then
12.0% behind the 8,200 sold in the same period
of 2019.
Volvo saw the largest improvement with
March sales of 1,717, an increase of 391 trucks,
or 29.5%, compared to February’s 1,326. Compared
with March 2019 numbers, sales this
year declined 28.6% from 2,404. For the year
to date, Volvo sales of 4,511 are 21.5% lower
than 5,744 sold in the same period of 2019.
That’s a little better than the industry average
of a 24.3% decline.
Mack sold 1,404 Class 8 trucks on the U.S.
market in March, 9.8% more than 1,279 in February.
Compared to March of last year, sales
declined 13.5% from 1,623 sold. For the year
to date, however, Mack is faring far better than
the industry average with sales of 3,660 in the
first quarter, only 3.8% behind the same period
of 2019.
Freightliner sales of 5,983 were an improvement
of 2.4% over February’s 5,844 but
were 28.5% behind the 8,363 sold in March
2019. For the first quarter of the year, Freightliner
sales of 17,887 were 30.1% behind last
year’s pace.
So far, Western Star has positive numbers
all around. March sales of 522 bested February
sales of 459 by 13.7% and were 24.9% better
than March 2019 sales of 418. For the year to
date, Western Star is 10.8% ahead of last year’s
pace, with 1,422 trucks sold compared to 1,283
in the same period last year.
International sales improved in March by
10.1% with sales of 1,886 compared to 1,713 in
February. Compared with 2019, however, the
numbers aren’t as positive. Sales this March
declined by 45.7% from March 2019 sales of
3,476. For the year to date, sales of 5,538 Internationals
are 40.9% down from sales of 9,365
in the first quarter of last year, the largest of any
of the major manufacturers.
In the coming months it’s not the pandemic
itself that is expected to impact both new and
used truck sales: It’s the economic downturn
that results from shutdowns and quarantines.
“We’re expecting economic contraction of
26% or 27%,” Vieth explained.
Shutdowns and slowdowns of U.S. manufacturers,
combined with the dearth of imported
goods, have resulted in far fewer loads for
trucks to haul. As always, when demand falls,
so do freight rates. All of those trucks added to
fleets in 2018 and 2019 are now competing for
the fewer loads available.
“In the past few weeks, we’re seeing freight
rates get crushed,” Vieth said.
When the economy is in decline and freight
again, the public already has negative perceptions
of personal-injury lawyers, yet jurors still
return nuclear verdicts rewarding their efforts.
Secretary of Transportation Elaine Chao said
at the White House event honoring truck drivers,
“Truckers are playing a heroic role in helping
America cope during this crisis and will play a
critical role in economic recovery.”
It is too soon to determine the impact of the
public’s sudden and dramatic positive view of
truck drivers in the past several weeks. But with
government officials and business owners lauding
them as heroes, will juries continue to view
the industry a rolling ATM machine?
For the time being, those monitoring the
tractor-trailer versus personal-injury-attorney
battle may find counting billboards to be the
most accurate barometer. 8
Business May 1-14, 2020 • 19
iStock Photo
Peterbilt was the only major manufacturer to
sell fewer new Class 8 trucks in March than
in February, according to data received from
Wards Intelligence.
rates are falling, there’s much less interest in
buying new equipment. Since the consensus
among most economists is that the economy
is headed for recession, expect truck sales
to continue declining. How quickly the U.S.
economy can recover and whether the coming
months bring a brief downturn or a full-blown
recession will determine truck sales for the remainder
of the year. 8
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b Tonnage from page 17 b
represents the change in tonnage actually hauled
by fleets before any seasonal adjustment, equaled
120.9 in March, 11.8% above the February level
(108.2). In calculating the index, 100 represents
2015.
Trucking serves as a barometer of the U.S.
economy, representing 71.4% of tonnage carried
by all modes of domestic freight transportation,
including manufactured and retail goods. Trucks
hauled 11.49 billion tons of freight in 2018. Motor
carriers collected $796.7 billion, or 80.3% of total
revenue earned by all transport modes.
ATA calculates the tonnage index based on
surveys from its membership, and has been doing
so since the 1970s. This is a preliminary figure
and subject to change in the final report issued
around the fifth day of each month. The report
includes month-to-month and year-over-year
results, relevant economic comparisons and key
financial indicators. 8