New U.S. trailer orders in August rose 7% month over month, with net orders of 10,600 recording their second sequential increase in nine months. However, year over year, net orders are down 51%, according to the latest issue of ACT Research’s State of the Industry: U.S. Trailer Report.
“With 2020 order boards fully open, the dramatic lack of fleet interest continues to astound,” commented Frank Maly, director, CV Transportation Analysis and Research at ACT Research, in a release.
“Uncertainty breeds inaction, and many factors are pushing fleets to observe the market from the sidelines,” he continued. “Poor financials, the result of lower freight demand and weak rates, portend a challenging financial road ahead, while more general economic uncertainties generate additional headwinds.”
Maly also pointed out that new orders are being placed at half the pace of January. Meanwhile, cancellations are running nearly double the unit volume -- but more than three times the rate to the backlog of Q1.
“Fleets are unwilling to commit investment for next year, while still adjusting this year’s spending,” he said. “Reports indicate that some orders were actually cancel/reorders, effectively pushing late ‘19 volume into next year, sometimes at OEM request.”
ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets.