BLOOMINGTON, Ind. – FTR, a transportation intelligence organization, has reported that trailer orders for this past October were down 30% from a year ago and 7% from the previous month, but notwithstanding the decline, exceeded expectations.
A total of 32,200 units were ordered last month, totalling 324,000 for the past year.
Refrigerated van orders were strong for the month of October, with a 40% increase over September. The report indicates that dry van, dump trailer and flatbed activity was also solid, though tanker orders were weak.
“In spite of the monthly or yearly comparisons, October was still an outstanding month for trailer orders,” said Don Ake, FTR vice-president of commercial vehicles. “Strength in the dry van and refrigerated van segments boosted the total. Flatbeds and tanks have really cooled off, however. The dry van orders appear to be ‘pent-up’ demand orders for trailers that were not replaced after the Great Recession. Fleets have money and continue to upgrade their trailers. Freight is weaker, so this is not expansion demand. The refrigerated van market is now expected to remain strong throughout 2016. The large order activity in this segment (a record) was totally the result of large fleets placing their entire 2016 requirements now, in order to reserve production slots.”
FTR has been providing transportation forecasting for more than 20 years and helps to provide information for companies in the sector to plan in advance.