Trailer orders edge down 3%
Jun 27, 2007 11:08 AM
Total trailer orders edged down 3% in May, according to figures compiled by ACT Research, Columbus, Indiana.
Manufacturers received orders for 16,134 trailers in May, in line with Bear Stearns’ forecast of 15,000-17,000, and a substantial improvement from the 40% drop year-over-year reported in April.
Dry van orders were 8,369 in May, compared with 4,245 in April—a 4% decline when compared with May 2006. This, too, is a major upgrade from the 63% year-over-year decline that the industry experience in April. However, the industry wide orders for 2,423 platform trailers were down 22% year-over-year in May. By contrast, the orders for 2,181 platforms received in April represented only an 8% decline from year-earlier levels.
On the production side, manufacturers built 11,311 dry-freight vans in May, down 16% from a year earlier—but a slight up tick from April.
Total trailer backlog-to-build ratios deteriorated 15% year-over-year in May to 5.3x. The ratio was down 19% year-over-year in April.
“Directionally, industry-wide total trailer orders were inline with low expectations,” says Bear Stearns’ Peter Nesvold. “However, industry-wide dry van inventories continued to rise (another all-time record month), up roughly 18% sequentially in May from April, and are now roughly 1,900 units higher than they were at the end of the first quarter of 2007. Industry-wide dry van builds improved sequentially, though still down 16% y/y. Dry van cancellations moderated during the month to 7.7%.”
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