July Trailer Orders Meet Expectations

Directionally, industry-wide total trailer orders for July-released today by A.C.T.-were inline with low expectations, according to Bear Stearns.

Total trailer orders were 11,673 in July (vs. Bear Stearns’ 10,000-12,000 forecast), down 42% year-over-year (vs. down 9% year-over-year in June). Dry van orders were 6,320 in July (vs. 8,199 in June), down 48% year-over-year (vs. up 14% year-over-year in June). Flat bed orders were 1,263 in July (vs. 1,321 in June), down 33% year-over-year (vs. down 61% year-over-year in June).

Dry van builds were 9,963 in July, down 22% year-over-year (vs. down 20% year-over-year in June). Total trailer builds were 17,758 in July, down 18% year-over-year (vs. down 14% year-over-year in June). Dry van backlog-to-build ratios deteriorated 21% year-over-year to 4.8x (vs. down 9% year-over-year in June). Total trailer backlog-to-build ratios deteriorated 18% year-over-year in July to 5.6x (vs. down 10% year-over-year in June).

Total trailer cancellations rose significantly to 16.4% (up 11.2pp year-over-year), while industry-wide dry van inventories declined 6% sequentially.