Fleets placed 52,000 preliminary orders for new trailers in September, the third-highest month in history as pandemic-driven consumer goods demand continues unabated.
In today’s edition of The Daily Dash, the West Coast wildfires are creating hazardous conditions for truck drivers. Plus, trailer orders are rising once again and volatile supply chains may become the new normal.
The continuing rebound in trailer orders is in line with three-year high in spot freight rates as consumers buy more goods than services.
Demand headwinds will place “downwards pressure on revenue and earnings likely into 2021” for trailer manufacturer Wabash National. This was part of the rationale behind credit rating agency Moody’s lowering its ratings on the company.
Makeup orders for tractors and trailers lead to rehiring of some laid-off workers and rebuilding shrunken backlogs from March and April coronavirus shutdowns. But how long will it last?
Trailer builder Wabash National kept the business impact of COVID-19 to a minimum in the second quarter. It even paid back money it borrowed and maintained its dividend.
After practically zeroing out in the early stages of the pandemic, trailer orders rebounded in June as fleets began to book new equipment to take advantage of the improving freight market.
After an April in which practically no net trailer orders were added to build schedules, a big improvement in May was welcome, but it’s still the second-weakest month on record.
Order cancellations and only essential replacement bookings dropped new trailer orders to just 6,500 units in March. Separately, Wabash National announced a two-week suspension of production and cash-conservation moves.
Now in sync with lower tractor orders after equipment ordering binge, trailer bookings recorded their softest February since the Great Recession as coronavirus concerns gave fleets another reason to stay out of the market.
A slower year of trailer production is expected as the equipment backlog waiting to be built fell in 11 of 12 months in 2019.
Trailer orders move up and down but the overall industry is ending a decade of growth that is just beginning to slow.
CFI employees have raised more than $800,000 for charities over the past 26 years as part of its Truckloads of Treasures campaign. Plus, airfreight may not grow next year, trailer orders drop and Connecticut delays toll discussion.
Preliminary orders for new trailers met expectations in October reached their highest level in 11 months, upholding expectations for a good, but not great 2020.
Trailer orders in September were the highest since February, suggesting another strong year of production in 2020.
After a record year for orders in 2018, fleets and dealers are holding back on placing many new trailer orders, a situation that analysts say could improve in the fourth quarter.
Class 8 truck manufacturers are beginning to pare production as the backlog of record orders from 2018 shrinks and new orders continue to be slow.
Payback for a record run of new trailer orders last summer continued in July with fewer than 10,000 new orders placed, a dramatic drop from the same month in 2018. Typical during summer months, low orders suggest a possible return to normal order patterns after an overheated second half in 2018.
Truck trailer orders dropped for the third straight month in February.
The Motiv EPIC all-electric chassis will be installed on Ford F-59 glider chassis at a Detroit Custom Chassis plant. Also, Colorado passes bill lowering the commercial truck driving age and the Port of Long Beach sees near-record volumes.
