May trailer orders slumped to their second lowest level on record, according to ACT Research’s latest State of Industry trailer report. Orders reached 3,107 last month, down from 10,501 orders in May of 2019.
New orders were set to reach 7,400, but more than half of them were cancelled.
The weakness in May orders was exceeded only by orders in April. That month, orders totaled only 207, ACT found.
‘Although up from April’s record low, May’s net orders will still rank as the second weakest in industry history,’ Frank Maly, ACT’s Director of Transportation Analysis and Research, said in a release. ‘There is little incentive for fleets to invest in new equipment right now. While there has been a general re-opening of the U.S. economy and some post-quarantine consumer-generated surges have been reported, caution continues to be the watchword.’
The State of Industry report comes amidst a slew of negative forecasts for the entire logistics industry.
Two weeks ago, FTR Transportation Research released its lowest Trucking Conditions Index on record. Class 8 orders tumbled. May’s Cass Freight Index, which was not much better than April’s, may have been the cherry on top. At this point, it’s hard to say when things will definitely turn around for trucking.