Trailer Orders Dip to 2009 Levels Even as Production Remains Strong

ACT Research reports net trailer orders for June 2019 at just 6,200 units, the lowest volume since 2009.

Frank Maly, ACT’s Director of CV Transportation Analysis and Research, added that “Despite indications earlier this year that fleets were anxious to place orders for 2020, discussions now indicate that fleets may have shifted to an extremely conservative stance. Softer freight volumes combined with lower rates could well be generating a reassessment of 2020 investment plans. Furthermore, cancellations continue to be strong, and that churn in the backlog is likely impacting this year’s fourth quarter. That’s an indication that this year may well close on a very weak note, setting a troublesome foundation for 2020.”

ACT Research estimated trailer orders, June 2019

Despite the disappointing order report, production continued at a brisk pace last month, ACT noted. Preliminary results indicate June will likely rank as the 6th best production month in history, with all of those top six occurring since last August. Backlogs commit the industry into mid-December at current build rates.

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