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Thursday, March 28, 2024

Trailer Orders Rebound

FTR reports United States trailer net orders for April met expectations, at 15,800 units. Order activity was up 15 percent month to month but down 12 percent year over year, registering the weakest April since 2010. Orders have totalled 289,000 units for the last 12 months, and backlogs are now down 7 percent year over year.

Dry van orders rebounded in April after a very weak March but were still at the second lowest total for the year. Refrigerated van orders were down month to month and the lowest since 2013, with flatbeds orders similar to March.

Order activity for liquid tanks and dump trailers was weak during April. There was minimal change in trailer build daily rates, which have remained fairly steady through the first four months of the year.

“The trailer market is slowly moderating and beginning a transition period,” said Don Ake, FTR vice president of commercial vehicles. “Orders have been weak for two consecutive months, and the start of the traditional summer order slump is still two months away. Backlogs remain excellent, so no major adjustment to production is expected for a few months. Cancellations were elevated for the second straight month, and this is usually an indication the market will begin cooling soon.

“Dry vans and refrigerated vans continue to sustain the trailer market. Fleets are profitable, and they are using some of these profits to replace units that were not able to be replaced during the Great Recession. Refrigerated freight is still robust, driving the need for new and replacement units. The dump trailer market is being boosted by increased road construction.”