FTR reports preliminary trailer orders for June at 5,500 units, down 53% month-over-month and 70% year-over-year. Orders fell to the lowest level since September 2009. Incoming dry van orders were weak and cancellations high, as fleets adjust orders previously placed according to their second-half needs. Refrigerated vans followed a similar pattern and flatbed orders remained feeble. Van production stayed fairly stable at high rates, while there is continued softening in the flatbed market. Sales are expected to moderate sometime in the second half of the year, as supply catches up with demand. Trailer orders for the past 12 months now total 343,000 units.
Don Ake, FTR vice president of commercial vehicles, commented, “Only a couple OEMs have started taking orders for 2020 and fleets did not respond much to this move in June. Carriers are reluctant to order at this time since commodity and component prices are uncertain due to the tariffs. It would appear that the market is returning to normal ordering cycles, with fleets evaluating their next year requirements during the summer and then starting to place those orders around October.
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