In December, trailer manufacturers received 57,300 orders, the second-highest monthly total since ACT Research began tracking in 1996. The volume was catching up after OEMs blocked many orders between April and August due to a lack of pricing visibility.
“I am unable to speak for other OEMs. “However, our higher December booking was driven by the later opening of the order books as we awaited required quoting information from the supply base,” Sean Kenney, chief sales officer for Hyundai Translead, told FreightWaves.
“As we work through this impact, Hyundai Translead anticipates continued higher-than-normal orders for the next few months.”
According to ACT Research, net US trailer orders in December were 46% higher than in November and 115% higher than in December 2021.
Despite accepting many December orders, some manufacturers report that part supply needs to improve.
Concerns about the supply chain for future trailer orders
“Supply-chain concerns persist,” with no immediate improvement in sight, according to Jennifer McNealy, ACT director of commercial vehicle market research and publications. “In terms of demand, most trailer manufacturers expect demand to exceed capacity through the end of 2023.”
Wabash, a major OEM, announced a long-term supply agreement with J.B. Hunt Transport on Jan. 10 that covers up to 15,000 trailers over the next few years.
Some OEMs have mentioned a loss of trust in ACT, but this has yet to be reflected in order cancellations.
The order volume in December surprised Mike Baudendistel, a FreightWaves market expert.
“It could be some makeup orders to make up for supply constraints over the last couple of years,” he speculated. “I believe the orders were even more heavily weighted toward large enterprise carriers than usual because they are well capitalized, and their business holds up better in a weakening market.”
In 2022, total net orders were 361,500, up from 249,400 in 2021. In 2022, the industry produced approximately 306,000 trailers.
“Our projections indicate that the upward trend will continue into 2023,” McNealy said.
