Trailer orders prove weaker in April

June 1, 2007
For April 2007, trailer orders were weak across the board (dry van, reefers, and flatbeds), while inventories continued to rise. Dry van cancellations

For April 2007, trailer orders were weak across the board (dry van, reefers, and flatbeds), while inventories continued to rise. Dry van cancellations came in at 18.3%.

Trailer orders totaled 12,334 in April, down 40% year-to-year (versus a 50% drop y/y in March). Dry van orders were 4,245 in April ( 9,515 in March), off 63% y/y (versus down 62% y/y in March). Flatbed orders were 2,181 in April (3,215 in March), a 8% decline y/y (versus off 27% y/y in March).

Dry van builds totaled 10,733 in April, an 18% drop y/y (down 16% y/y in March). Total trailer backlog-to-build ratios deteriorated 19% y/y to 5.7x (off 7.8% y/y in March). Dry van backlog-to-build ratios deteriorated 22% y/y to 5.2x (down 7% y/y in March).

Dry van inventories were 9,493 in April (versus 9,348 in March), up 41% y/y (up 48% y/y in March). Dry van inventories are now roughly 3,400 units higher than at the end of 2006.

Total trailer cancellation rates were 11.4% in April, deteriorating 640 basis points y/y (versus deterioration of 980 bp y/y in March). Dry van cancellations were 18.3% in April, deteriorating 1,310 bp y/y (deterioration was 1,330bp y/y in March).

This data was provided by Bear, Stearns & Co Inc and ACT Research.