U.S. Trailer Net Orders Up 71% M/M, but Down 42% Y/Y and 52% YTD

OEMs are encountering pricing pressure, as the market pendulum has swung to the fleets’ advantage

New US trailer orders of 37.2k were up 72% month-over-month, and after accounting for cancellations, net orders of 31.8k hit their fourth consecutive sequential rise, increasing 71% from September, but down 42% compared to October of 2018. Year-to-date, however, net trailer orders are 52% below last year, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report.

 “Most notable in this month’s data is the strength of the dry van segment, bringing volumes in more than double September’s level,” said Frank Maly, Director–CV Transportation Analysis and Research at ACT Research. He continued, “Discussions we’ve had have indicated that several large fleet orders underpinned last month’s results, but there are concerns about a continuation of that support, or at least support to that degree, in upcoming months.”

Additionally, Maly said, “Anecdotal information we’ve received indicates that CapEx commitments are proceeding at replacement levels, at best, as fleets balance equipment needs with the impact of softer freight demand and the resulting influence on their financials.” He concluded, “As expected, trailer OEMs are encountering pricing pressure, as the market pendulum has swung to the fleets’ advantage.”

Category: Equipment, Featured, General Update, News