Weak freight rates continue to reduce carriers’ willingness to invest in equipment. February net orders, at 20,500 units were nearly 21 percent lower year/year, but 6.6k units above January’s intake, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report.

“Seasonally adjusted, February’s orders fell to 20,100 units compared to a 12,600 seasonally adjusted rate in January,” said Jennifer McNealy, Director–CV Market Research & Publications at ACT Research. “On that basis, orders increased 59 percent m/m. Dry van orders contracted 18 percent y/y, with reefers and flats both down 31 percent compared to February 2023.”

She added, “Total cancellations took a turn for the better in February, dropping to 1.3 percent of the backlog, from January’s elevated 3.2 percent rate. Several markets remained above the 1 percent mark, with OEMs indicating cancellations from both fleets and dealers. Clearly, no one needs a higher trailer-to-tractor ratio or extra stock on the showroom floor in a market swimming in capacity.”

McNealy concluded, “The good news is that healthy economic performance is increasingly favoring freight-generating economic sectors. However, CAPEX remains limited at the start of 2024, and with impending expensive EPA regulations for power units, fleets are forced to make difficult decisions about how they spend their money, weighing on trailer demand.”