FTR: June truck trailer orders lowest since 2009

United States truck trailer net orders totaled 11,900 units in June 2016, a 10 percent decrease from May and a 56 percent drop from the same 2015 period, according to freight transportation analyst FTR.    United States truck trailer net orders totaled 11,900 units in June 2016, the lowest level for the month since 2009, according to the latest figures from the freight transportation analyst FTR.
   The June order activity was down 10 percent from May and 56 percent from the same 2015 period. Trailer orders have totaled 271,000 units the last twelve months with backlogs falling to their lowest level since September 2014.
   FTR noted activity was “below expectations” and attributed the low truck trailer orders primarily to elevated dry van cancellations.
   Dry van orders fell by 2,000 units in June, while all other trailer segments were either flat or down marginally compared with May’s totals.
   “Trailer orders were down in June due to cancellations in the dry van segment,” FTR Vice President of Commercial Vehicles Don Ake said in a statement. “It appears that Q4 backlog has begun to soften because of moderating freight demand, with fleets reevaluating their second-half requirements.  Monthly trailer orders have averaged only 13,700 units, so the market is cooling.  Backlogs fell 15,000 units, likely a record drop for one month.”
   “The good news is that production remains strong in the van segments,” he added. “Backlogs are still decent and production should fall only moderately in the coming months. However, flatbeds and tankers are not expected to improve any time soon. Dump trailer orders have weakened, so production cuts are probably on the way.”