The improvement in specialty trailer orders mostly represents two consecutive months of improved equipment bookings. Orders for dry and refrigerated trailers have lagged.
Net U.S. trailer orders for October rose by more than 6,000 units compared to September, the highest level since December 2022. However, the 34,400 orders reported by FTR Transportation Intelligence were down about 21% compared to October of last year.
Manufacturers built about 4% more trailers in October than in September. But net backorders meant that backlogs rose for the second month in a row and for only the second time this year. Total orders over the past 12 months reached 294,000 units, FTR said.
“October order increases for most specialty trailer types significantly outpaced dry van and refrigerated truck trailers,” said Eric Starks, FTR Chairman of the Board of Directors.
Accumulation to production levels are generally consistent
The backlog for production levels is generally consistent with historically normal levels. Backlog-to-build ratios for dry and refrigerated truck trailers remain high and should support current production levels, Starks said.
Low ratios for specialty trailers such as tankers and flatbed trucks could portend future production cuts.
ACT Research said initial October orders of 35,300 indicate the backlog will increase by about 7,300 orders to 146,100 units when counting for the month is complete. This equates to waiting five months for the delivery of a new trailer.
“Data continues to provide mixed messages, with cancellations remaining high, driven primarily by the platform and tank sectors, even as backlogs remain at healthy levels overall and especially in specialty sectors,” said Jennifer McNealy, commercial vehicle market director at ACT. Research and publications.
ACT’s initial order figure of 35,300 came in slightly below FTR, but adjusted for seasonal factors, the estimate was just 26,200 units. ACT pegged a year-on-year demand decline of 26%.
“While this certainly continues the positive industry momentum that began last month, two months of strong orders does not guarantee the full year,” McNealy said. “It’s still too early to call in the New Year’s order season.”
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