Trailer orders fell 71% in August compared to a record August a year ago. Fleets are still absorbing all of last year’s orders. (Photo: NACFE)
Story by FreightWaves’ Alan Adler
Orders for new trailers continued to stagnate in August as cancellations rose and backlogs of equipment in production queues fell.
FTR Transportation Intelligence reported final orders for August of 10,400. ACT Research pegged preliminary orders slightly higher at 10,500. Both numbers were about 70% below the 38,000 new trailer orders placed in August 2018.
When canceled orders are included, the net month-over-month gain was 2% compared to reported orders, said Frank Maly, ACT’s director of Commercial Vehicle Transportation Analysis and Research.
All three major categories — dry vans, refrigerated units and flatbeds — saw lower orders as dealers and fleets absorb record deliveries based on orders pulled ahead and placed in 2018. Trailer orders for the past 12 months total 300,200 units, according to FTR.
Dry van orders grew slightly in August but cancelations reduced the month-over-month gain. (Chart/ FreightWaves SONAR: Orders.Van )
Backlogs fell for the eighth straight month and are now at their lowest level since late 2017, said Don Ake, FTR vice president of commercial vehicles. However, trailer production stayed strong at near-record levels in August.
“Trailer orders should begin to rise in September as a few fleets place orders for 2020,” Ake said. Orders should significantly improve in October and months following as the market returns to traditional ordering patterns, he said, adding that flatbed and dump trailer sales will suffer from weakness in the industrial sector.
ACT’s Maly said August orders should have been higher because order boards for 2020 were open, but “fleets and dealers are still reassessing their true equipment needs for the remainder of this year.
“On a seasonally adjusted basis, net orders actually declined 14% from July,” Maly said. That reflects economic uncertainty, lower freight volumes and rates, as well as tariff concerns, he said.
Trailers ordered now typically would be delivered in mid-January 2020, though some build slots are available in the fourth quarter, Maly said.
Although new guidance on mask wearing returns the industry to some semblance of normalcy after over a year of lockdowns and restrictions, employers should remain cautious in revising policies.
While Texans are accustomed to living life free of excessive state-level taxes, they were in for a shock when their own U.S. Senator, Republican John Cornyn, used his national platform to advocate for the establishment of a truck-only vehicle miles traveled tax.
As we discuss ways to improve the sales relationship between carrier and shipper, the term “commodity” always comes up. Most carriers feel being a commodity diminishes the services they provide. It doesn’t have to be that way.
The nation’s top trucking research group plans to update previous studies on the effects of legalized marijuana and other drugs on truck safety along with integrating 18- to 20-year-old drivers into the industry.
Throughout the entire 90-year history of trucking in the United States, excessive detention has been a scourge on the industry. An upcoming 90-minute immersive workshop will share tools and strategies to combat this issue and keep the wheels moving and profitable.
While a request for Supreme Court review of the Ninth Circuit Court of Appeals decision to overturn an injunction banning enforcement of California’s AB5 will almost certainly follow, at this time, motor carriers who operate in California must be prepared to act in accordance with AB5.
The word “safety” is everywhere in the trucking industry. It is talked about nearly every day in the press, Congress has zeroed in on it, and most carriers will say that it is their top priority. With all this attention, it’s easy to believe that safety has become cliché. But it’s not.
A day after Colonial Pipeline said there was light at the end of the tunnel for the line’s closure due to a cyberattack, the impact of the shutdown on the ground is being felt.
Truck drivers and fleets have two months to prepare for the Commercial Vehicle Safety Alliance’s (CVSA) annual Operation Safe Driver Week, which is set for July 11-17. Here is what inspectors will be looking for.
