COLUMBUS, Ind. — Weak freight rates continue to reduce carriers’ willingness to invest in equipment.
February net trailer orders, at 20,500 units, were nearly 21% lower year-over-year but 6,600 units above January’s intake, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report.
“Seasonally adjusted, February’s orders fell to 20,100 units compared to a 12,600 seasonally adjusted rate in January,” said Jennifer McNealy, Director–CV Market Research & Publications at ACT Research. “On that basis, orders increased 59% month-over-month. Dry van orders contracted 18% year-over-year, with reefers and flats both down 31% compared to February 2023.”
Total cancellations took a turn for the better in February, dropping to 1.3% of the backlog, from January’s elevated 3.2% rate.
Several markets remained above the 1% mark, with OEMs indicating cancellations from both fleets and dealers.
“Clearly, no one needs a higher trailer-to-tractor ratio or extra stock on the showroom floor in a market swimming in capacity,” McNealy said. “The good news is that healthy economic performance is increasingly favoring freight-generating economic sectors. However, capex remains limited at the start of 2024, and with impending expensive EPA regulations for power units, fleets are forced to make difficult decisions about how they spend their money, weighing on trailer demand.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
