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The freight recession continues to bump along the bottom, with the spot market continuing to be battered by overcapacity amidst freight demand that is somewhat improved but still soft.
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Heavy- and medium-duty truck production improved in 2022 and OEMs were building at full capacity in 2023. The exit of some smaller fleets increased the availability of used Class 8 trucks as well during 2023.
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ACT Research analysts expect higher trailer build numbers in 2023 and 2024, but there are clouds, while Class 8 2023 build backlogs will continue to decline, as the rebalancing of the freight market is being drawn out.
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Order activity for the last month of the 2022 was up over 100% versus December 2021.
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Find out why FTR's CEO Jonathan Starks says trailer manufacturers seem to have found themselves in a "goldilocks environment."
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With backlog-to-build ratios above the seven-month mark, fleets needing trailers are getting in queue and staying there, said ACT Research's Jennifer McNealy.
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The pent-up demand for trailers is estimated at over 100,000 units, with an average backlog-to-build ratio of just over eight months for the total industry.
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A major jump in trailer orders during March will extend OEM commitments through most of the rest of the year, unless manufacturing capacity increases.
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The decline in trailer orders is attributed to supply chain disruptions, a labor shortage, and OEMs having to continue to manage backlogs.
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Trailer net orders rebounded in November, as large fleets place orders and OEMs began to solidify their 2022 production plans.
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