According to the numbers from both ACT Research Co. and FTR, trailer orders set a record for the month of February, despite falling month-over-month compared to a strong January.
ACT’s final numbers for February net trailer orders is 33,000 units. While February net orders were off 17% from January, they were up 27% year-over-year. Feburary came in as the 14th-highest order month ever recorded by ACT, but ACT noted that sequential softening in orders is expected as we approach the end of the industry’s traditional order season.
“Fleets continue to place orders at a record pace, as last month was the strongest February order volume in industry history,” said Frank Maly, ACT’s director of CV transportation analysis and research. “That follows a record-setting string of months that started last fall. February’s all-time high also follows the strongest January in industry history. The supporting story continues to be tight trucking capacity and the resulting strong freight rates, driving fleet equipment needs and purchase ability. Industry backlogs now stretch through September on average, with dry van and reefers averaging lead times that stretch into the fourth quarter. That lengthy timeline also helps encourage fleets to join the order queue.”
FTR reports preliminary February orders at 32,000 units, 24% above a year ago. While down 20% m/m, the February activity was the fifth consecutive month that trailer orders exceeded 30,000 units; and if the preliminary numbers hold, it will be a record February for trailer orders. Orders dropped from the huge volumes of the past three months but remain historically high. Backlogs should rise above 170,000 units for the first time since early in 2016.
“The trailer market remains red-hot,” said Don Ake, FTR’s vice president of commercial vehicles. “Fleets are scrambling to add capacity and are ordering large numbers of trucks and trailers. Most of these orders are for the second half of the year. This is good news for the economy and the industry in that carriers expect the solid freight demand to last throughout 2018. The economy is vibrant and producing freight growth across all sectors, which is boosting all segments of trailers and resulting in record order months.”