Wednesday, June 22, 2011

New US Truck Report Confirms Freight Haulage Groups Plans Stable

Past Year Shows no Desire to Expand
Shipping News Feature

US - Started in 2nd Quarter of 2008, the Transport Capital Partners’ (TCP) quarterly Business Expectation Survey acts as an indicator of the state of the American freight trucking market by canvassing industry executives across the country. The company’s most recent study, for the second quarter of this year, found the carriers’ responses have essentially remained unchanged for the last four quarters on capacity plans. The carriers were generally reserved about increasing haulage capacity via acquisition or truck purchases, and the survey attempts to highlight the reasons.

When carriers were asked if they had been able to find reasonable credit, over 80% indicated they had. TCP Partner Richard Mikes, founder of the survey feels this indicates that the credit constraint issue is behind most truckers compared to the first quarter of 2009 when only half the carriers reported reasonable credit and points out most new truck orders are for replacement vehicles.

“TCP expects the second half of 2011 to likely show a greater capacity gap as freight volumes expand and carriers remain conservative on additions” remarked Lana Batts, TCP Partner and the survey concludes that larger carriers (over $25 million in revenue) are more conservative with 32% not adding any capacity compared to 24% reported by smaller carriers. Thirty-nine percent of carriers intend to add some capacity with one quarter acquiring contractors.

Batts and Mikes note that this level of additions indicated in the survey result in truck supply conditions forecast in an earlier TCP white paper and are generally still on target favouring carriers. Both partners with extensive experience in transportation directed the survey and analyzed the findings. TCP couples the survey results with conversations they hold with carriers and others in the industry to present an insightful dialogue on key issues. Interested parties can see more details on the TCP website.