Orders For US Trailers Jump Up To 21% In February, Says FTR
The source of trucking industry’s transportation intelligence, FTR is a top-notch analysis and statistics provider company in the US. But trucking industry is not its main directive, it has also served the rail, equipment, intermodal, financial and equipment market for nearly thirty years now. With the mission to offer knowledge, disciplined forecasting and industry leadership, FTR has been promoting efficient practices in the North American Fright Industry in creating, using and managing economics for the industry.
Recently in the news, FTR published another statistical date report for the month of February 2016. The report showed that the net order for US trailers in February 2016 jumped to 21% from January which was also a 2% increase than last year.
The significant increase in demand for trailers was better than forecasted taking into consideration the strong backlogs presently at trailer Original Equipment Manufacturer (OEMs).
Orders for dry vans remained stable while orders for dumps, refrigerating units and flatbeds increased. According to the statistical data, refrigerated vans saw a 40% boost in their demands from January. In addition, the order for flatbeds in February was the highest since last year’s October.
Vice-president of commercial vehicles at FTR, Don Ake reported that the industry’ slow and steady improvement is considerably impressive especially after the orders for other vehicles such as vans started to hit bottom. He seemed happy that other trucking sectors were picking speed and becoming more established.
“The trailer market continues at a strong and steady pace. Orders were fairly impressive considering the robust ordering at the end of 2015. Van orders have slowed, but it’s good to see the increased orders in the other segments. It would appear the trailer market has stabilized for now at a high level,” he said.
Speaking about the importance of backlogs and why they are so beneficial for dry vans and trucks, Ake believed that backlogs can aid tremendously in the upcoming quarters with lower cancellations and better future prospects.
He said, “Backlogs are tremendous for dry vans and refrigerated vans. This should support current build rates through Q2 and into Q3. Cancelations were very low, so the backlog looks solid for now. The van market is being driven by pent-up replacement demand. The large fleets are still making good profits and are investing money in upgrading their trailers.”
This recent boost in the demand for US trailers, if continued to rise will have a positive impact on the trucking industry and also the job market. As more and more trailers are demanded by local and foreign clients, the trucking business will soon be on the move as it was back in 2014.