Why Truck Manufacturers Avoid Overbooking Class 8 Orders
Truck Manufacturers Avoid Overbooking Class 8 Orders.
Is your business dealing with shipping issues? If so, it may result from the truck manufacturers trying to avoid overbooking class 8 orders. Product supply chains continue developing as companies work through the results of the 2019 pandemic. Many truck manufacturers are reassessing class 8 orders as they plan for their supply chain looks like moving forward. Here are some reasons why and what they mean for your business.
Why Truck Manufacturers Avoid Overbooking Class 8 Orders?
According to ACT research market analysis, there is currently more product demand than the number of trucks needed to fill orders. Many companies have a backlog of orders, spanning several months, they cannot fill because of low truck fleets. Even if some truck fleets have what they need, it comes at a reduced price.
Truck manufacturers are taking extra precautions as they move forward in the industry. The supply chain issues created a financial strain as companies struggled through shipping delays world-wide. Truck manufacturers want to avoid overbooking Class 8 orders for a specific reason.
Product Supply Shortage Is Affecting Everything
Navigating supply shortage is something all companies are dealing with right now. Commercial vehicle production is also less than it was before the pandemic. This means some trucking companies may not have the fleet large enough to deliver orders. The all-around product supply shortage has caused manufacturers to slow down orders. The FTR Transport Intelligence research shared that original equipment manufacturers (OEMs) are fine with booking new orders one month at a time as they work on their backlog orders.
Limiting Orders Means Fewer Cancellations
The new increase in demand for new trucks is a good thing. However, manufacturers can’t keep up with this demand if they’re waiting on parts and supplies for operations. A few months ago, the demand for new trucks was more than the supply demand. Some companies are also dealing with labor shortages, which slows down production. So, this means many truck manufacturers avoid overbooking Class 8 orders, helping to reduce cancelation amounts.
The FTR Transport Intelligence also remarked that OEMs are constantly reevaluating each month, and only filling enough orders for a month. This will help them avoid large cancellation amounts like they had several months ago. As the supply chain shortage improves, OEMs will reevaluate again, and lift some of their restrictions. Until then, it’s important for companies to search for alternative shipping solutions for their needs.
Important Things To Consider For Your Business
It’s important to consider how OEM restrictions may affect your business. As restrictions and supply shortages continue, air freight and other modes of shipping may experience delays. If so, this means delays for many businesses. If carriers continue to struggle keeping their fleets running, you may want to consider expanding your solutions to get your products on time and within budget. While business owners wait for OEMs to increase their orders, they may want to consider partnering with a transport solutions company.
Get Help With Trifecta Transport
Trifecta Transport is an experienced team that helps businesses with shipping logistics. We work to help you navigate the details and streamline the steps of domestic freight shipping services and more. Whether you use air freight shipping, intermodal rail, or others, we can help you find the best solutions for your business. Let us help you plan transport services, time critical details, discounted rates, and more. We have helped many companies work through shipping details and move forward in the spite of the pandemic aftermath. Our company can help you too.
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Are you ready to partner with Trifecta Transport today? Get in touch with us and let us help you work through the logistics of your shipping concerns.
