January Trailer Orders Dip… Cancellations Reach Highest Level Since August 2016
Columbus, Indiana – According to ACT’s preliminary estimate for January 2019, net trailer orders came in at 25,800 units creating a slight backlog.
“While the industry had the weakest January order volume since 2016, it was still sufficient enough to generate very minor order board growth,” said Frank Maly, ACT’s Director of CV Transportation Analysis and Research. “January net orders were off 7% versus December and 35% down year-over-year.”
Maly attributed the decline to slower dry van and reefer trailer volume. However, Maly was quick to point out that the dip was not due to lack of demand from fleets, but rather some OEMs unwillingness to take new orders because of existing backlogs.
Maly also noted, “January was the third consecutive month that the industry posted an all-time record backlog, although the pace of improvement is beginning to wane. With backlogs extending through the year for dry vans and reefers, OEMs would likely need to quickly open 2020 orderbooks to allow for further backlog growth in the near-term.”
Another concerning piece of data was that January cancellations were the highest since August 2016. However, Maly downplayed it as still “well within acceptable limits.”
Final volume will be available later this month.
(featured image courtesy of Utility Trailer)