FTR Reports Trailer Orders Fell Off Again in December to 16,500 Units
Bloomington, IN – (Trailer Technician) – FTR reports that preliminary trailer orders for December were the lowest since August at 16,500 units. December trailer orders were -17% m/m and -41% y/y. Trailer orders for 2019 totaled 203,000 units.
Fleets are displaying the same caution on trailers as they are showing in their Class 8 order activity. The large carriers are being careful with their ordering strategy by placing smaller orders with shorter lead times than is typical at the end of a calendar year. A great deal of uncertainty exists at the start of 2020 due to a weaker manufacturing segment, the drag of tariffs, and a tumultuous political situation. Buyer nervousness is expected to increase throughout the year due to the upcoming election and conflict in the Middle East.
Don Ake, FTR vice president of commercial vehicles, commented, “Freight is forecast to grow only about 1% this year, putting little pressure on fleets to boost trailer capacity as they did the last few years. However, total freight levels remain elevated and trailer production for 2020, although down significantly from 2019’s record year, is forecast to be good from a historical perspective. Fleets are expected to continue to replace old trailers based on their standard trade-in cycles. Van trailers sales, spurred by strong consumer spending, are still doing better than the vocational segments.”
“Trailer orders should stay in the 20,000 unit a month range for a while, as fleets continue to carefully match orders with short-term demand. Eventually, the manufacturing sector should recover, generating more orders for flatbed and dump trailers.”
For more than 30 years, FTR has served as the industry leader in freight transportation forecasting for the shipping, trucking, rail, intermodal, equipment, and financial communities in North America. FTR’s experts, with over 250 years of combined experience in the transportation industry, provide quantitative analysis with historical and modal-specific insights. FTR’s reports, data, commentary, and insights help clients evaluate market risks, identify new opportunities, and make informed decisions.
FTR is the only company with a complete set of freight data for all modes of transportation with detail at the 3 Digit STCC commodity level. FTR tracks and forecasts 200+ unique commodity groups both quarterly and annually using their proprietary Freight•cast U.S. freight transportation model. FTR’s Transportation Conference held annually in September in Indianapolis is a unique event bringing together every aspect of the freight transportation world into one place. For more information www.FTRconference.com
To learn more about FTR visit www.FTRintel.com, Follow us on twitter @FTRintel and connect with us on LinkedIn! To contact FTR, call 888-988-1699 or email firstname.lastname@example.org