COLUMBUS, Ind. – Trailer orders slumped in July to 10,147 units, according to the latest data from ACT Research, marking the lowest total since January 2010.
Orders were down 25% month-over-month and 50% year-over-year, ACT reports.
“The second half of the year opened on a disappointing note; net orders of 10,147 trailers were the lowest monthly volume since January 2010,” said Frank Maly, director, CV transportation analysis and research at ACT. “Low freight rates along with slow demand appear to have brought contemplation of fleet overcapacity to the forefront, causing fleets to re-assess their equipment needs for the short and medium terms.”
He added the impact of that attitude shift was exacerbated by the usual mid-summer seasonal order trough. Maly also noted, “Current market conditions will challenge the timing of this year’s order season; recent years have seen a progressive pull-ahead of volumes, as fleets saw equipment needs and were willing to fast-track their commitments. Market conditions don’t really support that pattern this year; we anticipate, at best, near-normal order season timing, which means more action in Q4 versus the Q3 trend we’ve seen in recent years.”