Trailer Orders Dip Modestly for June 2022
Industry experts state that there’s an annual trend for trailer sales in that they usually bottom out in June. This year is no different as June 2022 is the weakest month for sales thus far, however, there is a silver lining to the news, according to ACT Research and FTR.
June 2022 Details
Freight Transportation Research pins the number of trailer sales for June 2022 to be 14,400, a 23% decrease from May. To a layman, this may seem like anything but a “modest” drop as suggested in the title, but there is good news to be had.
Compared to June 2021, trailer sales are 20% higher. As a matter of fact, every month in 2022 thus far has had trailer orders close, equal, or higher than the same month last year. Not bad, considering production strain has been ravaging the industry for the past few months.
Don Ake of FTR says that the future summer months will also see a decrease, but in an entirely expected manner.
“The order numbers are consistent with traditional trends entering the summer months. However, usually the numbers drop because fleets have ordered all the trailers they need for the year. This time, the orders are falling because the OEMs have limited build slots available due to ongoing supply chain disruptions. The fleets need more trailers, and the OEMs want to increase production, but some component parts remain scarce. Orders should remain sluggish throughout the summer.”
ACT Research had similar results, 15,300 net trailer orders, 21% lower than May 2022, but 33% higher than June 2021.
Conclusion
The stock market works in an interesting way in that prices factor in expectations already set. For example, Netflix stock rallied on news of the company “only” losing 970,000 subscribers because expectations were double that. In the same regard, the trucking industry may look weak in terms of sheer numbers, but it is doing better than typically expected for any given June. There is a good chance that the results for July and August will be the same: lower than previous months, but better than otherwise expected.
If there is one thing we have learned in the past two years, it is that the trucking industry is extremely resilient, whether it is facing a worldwide pandemic or global supply chain shortages. The industry will prevail.
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