U.S. trailer orders have been going up and down recently. Transport Topics reports that the situation was the same in May. There was an increase in May. The reports show that the orders in May increased by 12%. In doing so, the number of orders stood at 6,600 units. This is in comparison to the previous year. This does not mean that the orders have been consistent. Throughout the year, the numbers have been up and down in comparison to the previous year. Just a good example: despite beating last year’s numbers, the same month of May saw a 26% contraction compared to April. That is how volatile the numbers have been in terms of orders. The drop was expected to happen.
What is actually happening?
The volatile nature of orders is not new. In May, the numbers are always low. It is an annual cycle thing, and it was always coming. May is one of the weakest order months. Cancellation rates are also sky-high. That is the most significant concern, alongside the order acceptance rate not being so promising. Jennifer McNealy was quite clear that the situation is not going to be better due to the challenges that are still at hand. The challenges, just to name a few, include the high interest rates, full inventories, and policy changes.
Charles Willmott noted that he has been in business for almost 50 years now. He has seen a lot in these years. One of the two biggest anomalies he has witnessed is the Great Recession. The other one is COVID-19. He states that the two are the main reasons why the market hasn’t yet reached its full potential. It is also the reason why the market has been so volatile and unpredictable over the years. When the year began, it all looked like it was going well until it wasn’t. Both production and sales have gone too low over the past two years. There is a recession, not as big as the Great Recession, but the numbers haven’t been all that promising.
Willmott has been talking to stakeholders to see how the industry is. Things have slowed down. There is too much uncertainty about the freight market and the broader economy. It is only sensible for companies to pause investments until things look clear. Heading into 2025, things looked set to get better. But with the Trump administration taking over, things took a dark turn. The tariffs have caused havoc to the economy, creating so much uncertainty.
Dan Taylor, director of sales at Western Trailer, says it takes a lot of effort to keep orders coming in. Things are moving slowly compared to the previous year. Customers are watching from a distance to assess things before making any moves. Uncertainties, like tariffs, have led them to hold off for a while before making big investment decisions. No one can make any decisions in the current conditions. Until there is some stability, that is how things will remain.
