Trailer Orders: When Good News Still Looks Bad
The latest news on trailer sales looks good at first glance, but still disappoints. How? Trailer net orders rose 52% month over month in August, but contracted a disappointing 37% year over year, according ACT Research.
“Much of August’s improvement came from large fleet volume, and the gains were not evenly spread across the competitive landscape,” said Frank Maly, Director–CV Transportation Analysis and Research at ACT.
Maly explained, “While negotiations continue regarding fleets’ 2017 equipment needs, there appears to be less enthusiasm in the discussions than reported earlier this summer. Overcapacity, lackluster y/y fleet financials for Q2, and minimal expectations for improvement in freight rates are generating investment plan headwinds. After several years of solid and ever-earlier order placement, expect this order cycle to be less robust and straggling.”
Category: Cab, Trailer & Body New, Featured
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