FTR reported that Class 8 preliminary net orders for December came in at 26,620 units, which was 26% below November and down 6% y/y. Those comparisons fell within expectations given seasonal tendencies.

Total Class 8 orders for the previous 12 months have equaled 253,000 units, and more recent run rates are even stronger. The annualized rate over the past 6 months has been 302,000 units, and the three-month annualized rate is 362,000 units. OEMs are still able to fill build slots at a healthy rate.

Eric Starks, chairman of the board, commented, “Despite the slight year-over-year decrease in orders in December, the market is still performing at a high level historically. Even as the freight markets have been weak for an extended period, fleets are still ordering equipment. Order levels were above the historical average but continue to follow seasonal trends, reinforcing our expectations for replacement demand in 2024.”

Preliminary orders may be estimated and are subject to revision when FTR releases final data mid-month as part of its North American Commercial Truck & Trailer Outlook service.