FTR reported Wednesday final trailer orders for January at 26,300 units down 5 percent month-over-month and 39 percent year-over-year.
Despite the monthly drop, FTR says January orders came in higher than expected. The order level meets current trailer production rates so backlogs remain near record levels. The company says the considerable year-over-year negative comparison for trailer orders is primarily the result of the huge spike in orders during January 2018, as fleets scrambled to catch up with robust freight growth. Cancellations were elevated in January for the second straight month, as fleets shift orders around to more precisely fit their requirements.
Additionally, FTR says orders during the month were particularly strong for specialty trailers. Trailer orders for the past 12 months now total 396,000 units.
“This was still a positive month for trailer orders considering how many orders are already in the backlog. All trailer segments are expected to start off 2019 with momentum, which is good news for the industry and general economy,” says Don Ake, FTR vice president of commercial vehicles. “The business uncertainty and more subdued economic indicators have not impacted the trailer market as of yet. We do expect the market to cool slightly in the second half of the year as freight growth moderates, but for now, there is still a huge demand for new trailers across most segments.”
