Peak order season opened in September, and October net orders continued to show strong bookings, according to the latest reports from ACT Research. However, cancellations in some segments remain elevated, despite healthy backlogs.
October net orders, at 35,300 units, were 26% higher year-over-year, and 4,000 units more than were booked in September.
“Historically, 35% of the year’s orders are booked in Q4, so the quarter’s seasonal factors run roughshod on the nominal data. Seasonally adjusted, October’s orders fell to 26,200 units. On that basis, instead of rising from September, orders decreased 9% month-over-month,” said Jennifer McNealy, director of CV market research and publications at ACT Research. “While the last two months’ order intake is a positive sign, what we don’t yet know is for how long this level of deal closing will be sustained in the freight recession that is expected to linger into early 2024.”
“The industry cancellation rate moderated to 1.2% of the backlog in October, from September’s 2.8% level, improved but still slightly elevated,” McNealy continued. “And as expected in October, orders outpaced production. As a result, the trailer backlogs grew 5% sequentially, but remained lower y/y, down more than 25% against 2022’s supply-chain constrained and pent-up demand heavy environment.”
