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John Sommers II for Transport Topics

New trailer orders totaled 33,400 in October, the second strongest figure in 2015 despite dropping 30% from the same month a year earlier, which was the highest on record, ACT Research reported.

“We have to remember what we are comparing it to,” ACT analyst Frank Maly told Transport Topics. “A year ago was the all-time record monthly order volume for the industry.”

Maly said net orders of 7,837 for refrigerated trailers set an all-time record in October as large fleets placed orders.

Orders for the 10-month period stood at 249,922, down 10% from 277,384 in the year-earlier period.

October’s tally trailed only 35,952 in September.

In the record October 2014 period, orders were 47,512.

“We saw more strength [in September] than patterns would normally call for, and that followed a little to [October]. The combination of the two months has got us kicked off into a solid order season,” Maly said.

Glenn Harney, chief sales officer at Hyundai Translead, told TT: “We are very comfortable with our backlog and the orders we anticipate closing over the next few months. Customers have been very good this year about giving us visibility of their anticipated needs. History suggests that most, if not all, will turn into orders.”

He added: Hyundai’s primary focus is on dry freight and refrigerated vans.

Don Ake, vice president at the research firm FTR, said in a statement that in spite of the monthly or yearly comparisons, October was still an outstanding month for trailer orders. “The dry van orders appear to be pent-up demand orders for trailers that were not replaced after the great recession. Fleets have money and continue to upgrade their trailers. Freight is weaker, so this is not expansion demand.”

FTR reported somewhat lower orders, placing them at 32,300.

Larry Roland, director of marketing at Utility Trailer Manufacturing Co., said the company realized an 89% increase in new orders for October compared with September and a 19% increase for October year-over-year.

“Orders remain very strong in all product lines with the exception of flatbeds,” Roland said.

Charles Willmott, chief sales officer at the Strick Group, which includes Strick Trailers, Cheetah Chassis and John Evans Trailers, said, “I cannot remember a time when our backlog has been as healthy as it is currently.”

He was speaking primarily of dry vans. “All other products are good, but not out as far as the vans.”

Willmott said replacement demand was a key factor driving this cycle.

Not only were trailers not built during the recession, he said, but idle trailers were scrapped “to get them off of storage yards. One estimate I saw was that between 3% and 5% of the national fleet was scrapped in that three-year period of time. That’s huge.”

Robert Thull, CEO of the leasing equipment firm Milestone Equipment Holdings, said his customers’ demand for trailers was healthy and occurring at a moderate pace amid backlogs that are very tight.

“There is no rapid growth. We see very responsible behavior on behalf of all our motor carrier customers,” Thull said.

Milestone acquired about 3,000 new trailers this year and expects to acquire about 5,000 new trailers in 2016, Shull said. Also, Milestone expects its addition of secondary market used trailers to more than double in 2016 and it plans to acquire at least 5,000 additional used trailers for its rental and lease fleet.

Thull said that following a change in ownership in February and subsequent merger, Milestone saw its trailer fleet grow to more than 40,000 units, which includes some older units scheduled for retirement.