Trailer orders continue to fall in May

U.S. trailer net orders in May fell 14 percent from last month and 29 percent year-over-year, according to the latest figures from freight transportation analyst FTR.    U.S. trailer net orders in May fell 14 percent to 20,400 units compared to April, according to the latest figures from freight transportation analyst FTR.
   The orders also represent a 29 percent drop from May 2014. In the past twelve months, U.S. trailer orders have annualized to about 326,000 units.
   “The traditional summer slide continues, earlier and more pronounced than normal; however, there is still plenty of backlog available to support strong build rates through the end of the year,” FTR said.
   Backlogs have fallen 15 percent since their peak in January 2015, with the dry van, flatbed, and liquid tank segments most affected by the lower order rate in May. FTR noted that production remains steady for all trailer types.
   “The market has peaked in terms of orders and backlog and has started to moderate,” said Don Ake, FTR vice president of commercial vehicles. “This is to be expected, and conditions appear to be very normal.  The market descent has started, and, by all indications, it appears we are headed to the expected soft landing.
   “Order rates should continue to fall for the next few months,” added Ake. “Vocational trailers, except for dumps, have started to weaken faster than vans. This is due to the cut backs in the energy markets, exports, and some industrial sectors of the economy. Higher inventories indicate fleets are incorporating new trailers into use at a moderate pace.”