ACT: U.S. Trailer Orders in July Down Double Digits M/M, Y/Y and YTD
AUG 24, 2016 - 6:21 am
Trailer net orders fell 25% month-over-month and contracted a staggering 50% year-over-year, according to the most recent State of the Industry: U.S. Trailers published by ACT Research.
“The second half of the year opened on a disappointing note. Net orders of 10,147 trailers were the lowest monthly volume since January 2010,” said Frank Maly, director of CV transportation analysis and research at ACT. “Low freight rates along with slow demand appear to have brought contemplation of fleet overcapacity to the forefront, causing fleets to reassess their equipment needs for the short and medium terms.”
Maly added that the impact of that attitude shift was exacerbated by the usual mid-summer seasonal order trough.
“Current market conditions will challenge the timing of this year’s order season. Recent years have seen a progressive ‘pull-ahead’ of volumes, as fleets saw equipment needs and were willing to fast-track their commitments,” Maly added. “Market conditions don’t really support that pattern this year. We anticipate, at best, near-normal order season timing, which means more action in Q4/16 versus the Q3/16 trend we’ve seen in recent years.”
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