Trailer orders continued to contract in May, falling by more than 2,300 units from April to 6,600 units, ACT Research announced Tuesday.
FTR Transportation Intelligence showed a similar drop to 6,738 units, a 34% month-over-month decrease.
Despite the raw data drop, ACT says a silver lining is the total was nearly 12% higher than May 2024, and seasonal adjustment raises the month to 9,200 units.
“Lower May net order intake was expected, as it is one of the weakest order months of the annual cycle. More concerning, though, is this level of order acceptance does nothing to support backlog growth, particularly with the elevated cancelation rates reported in the past several months,” says Jennifer McNealy, director of CV market research and publications at ACT Research.
“With weak for-hire truck market fundamentals, low used equipment valuations, relatively full inventories, high interest rates and the ambiguity of policy shifts still in play, ACT’s expectations for subdued build and order intake levels during 2025 remain intact,” McNealy adds.
FTR reported cancellations hit 37.6% of gross orders in May, the highest rate in 12 months and substantially higher than April's 20%. Cumulative net orders for the 2025 ordering season are down 10% year-over-year.
"The ever-evolving tariff environment continues to disrupt the U.S. trailer market," says Dan Moyer, senior analyst for commercial vehicles. Tariffs on steel, aluminum and fabricated components are exerting downside pressure and increasing production costs. "OEMs and suppliers face pressure to either absorb rising costs or pass some or all of them on to fleets, potentially impacting fleet expansion and maintenance strategies. As a result, some fleets may delay new trailer purchases or turn to refurbished and alternative options. Potential consequences include heightened market price sensitivity, extended trailer lifecycles and a shifting of some demand toward used equipment or alternative configurations."
