November Trailer Orders Third Highest in History, FTR Reports
Net U.S. trailer orders in November exceeded expectations for a second consecutive month, rising to the third-highest monthly total on record, research firm FTR reported.
The order total of 39,300 units for November was up 1% year-over-year and 19% month-over-month.
Trailer orders now total 332,000 for the past 12 months.
Dry van orders for November were up 44% month-over-month, the best since December 2014. Refrigerated vans, while lower than the record numbers experienced in October, remained robust for the third straight month. Dump trailer orders also showed continued strength. All other segments met expectations, resulting in mostly positive across-the-board order intake for the month. Trailer build was up 4% per day compared with October.
FTR Vice President Don Ake said in a release, “The trailer market continues to show remarkable resilience entering 2016. This is the third-highest order month ever, and some segments aren’t even doing very well. It is particularly impressive considering Class 8 demand is faltering and freight growth is slowing somewhat due to the manufacturing slump. Demand is still strong because the replacement cycle for dry vans remains very favorable. The recession and slow recovery delayed some replacement demand, and carriers are still modernizing their fleets. In addition, fleets are being encouraged to place their entire 2016 requirement orders now, due to continuing OEM capacity constraints.”
Larry Roland, director of marketing at Utility Trailer Manufacturing Co., told Transport Topics that Utility realized a strong new order intake for November.
He also said several factors continue to drive new trailer orders while the Class 8 side is not experiencing the same steady growth. Class 8 orders were at their lowest level of the year in November, 16,770, which was the lowest total since June 2012.
“The trailer side of the equation has experienced a smoother, more gradual growth trend over that last six years than that of our power counterparts," Roland said.
“This has kept the backlogs from becoming overinflated and panic buying at a minimum," he said. "Also, increasing the trailer-to-tractor ratio has been utilized to offset the driver shortage. More spotted trailers mean the drivers don’t need to wait for the next trailer load."
In addition, freight outlook remains strong while consumers have more to spend because they are saving money with cheaper prices on fuel at the pump, he said.
