October net trailer orders, at 16,900 units, were up 40% from September, but 52% below the level accepted in October 2023, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report.
“Cancellations moved lower in October, below 1% of backlog, for the first time since November 2023. The cancellation rate has oscillated at elevated levels, between 1.2% and 3.6% throughout 2024,” Jennifer McNealy, director – CV market research and publications at ACT Research, said. “In the present environment, the challenge is that while quotation activity is happening, order placement remains tepid to date. Data continue to tell the story of macro-facing industry segments being particularly hard hit, with the industry traversing a much more competitive landscape than the past several years. Simultaneously, strong Class 8 equipment purchases continue to oversupply the market, thereby dampening for-hire freight rates and limiting capex for new trailers.”
“Trailer manufacturers have indicated that one of the pivot points needed to get the sales environment back on track was to move beyond the U.S. presidential election,” McNealy said. “While that milestone has been reached, the ramifications of that event remain unknown, and there are several other signposts that have not yet been realized, including freight demand/rate improvements, interest rates (lower capital costs), used trailer valuations, improved consumer confidence and better industrial activity.”
