Preliminary net trailer orders for April reached 17,200 units, according to data tracked by ACT Research, which is a 15% increase from March’s order rate of 14,981 units. Yet that is about 5% below the order rate of 17,992 units achieved in April last year.
Michael Baudendistel, vice president of Stifel Financial Corp.’s transportation & logistics research group, noted in a statement that
April’s trailer order rate “was somewhat stronger than we would have expected, given that April orders are generally weaker seasonally and considering the severe weakness in recent Class 8 orders.”
Yet he believes it is “unlikely” that trailer orders will be able to significantly outperform demand for Class 8 tractors, which Stifel expects will remain weak.
Yet he believes it is “unlikely” that trailer orders will be able to significantly outperform demand for Class 8 tractors, which Stifel expects will remain weak.
“We understand the arguments in favor of trailer demand outpacing Class 8 demand: favorable age demographic of trailers in the current active population, which are in need of replacement, and an increase in drop-and-hook activity, which necessitates more trailers per tractor,” Baudendistel explained.
“But while we believe those factors will cause trailer demand to hold up somewhat better than Class 8 demand, we believe the overall weakness in freight markets recently, poor TL and LTL pricing, and the historical correlation between tractor and trailer orders will continue to put pressure on trailer demand.”
By Sean Kilcarr , Fleet Owner
http://fleetowner.com/
By Sean Kilcarr , Fleet Owner
http://fleetowner.com/
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