Saturday, April 9, 2011

US Survey Says Freight And Trucking Companies Are Optimistic

Increased Fuel and Other Costs are an Unknown However
Shipping News Feature

US - A national survey of freight carriers undertaken by transportation analysts Transport Capital Partners, LLC (TCP)which has offices in Florida, Iowa, Colorado, Pennsylvania, Tennessee, and Virginia has found that freight haulage companies amongst others are optimistic that tonnage levels will grow over the next twelve months. The recent First Quarter Business Expectations Survey completed by the group found 92% of respondents expecting volume increases in the coming year.

Statements by TCP partners Richard Mikes and Lana Batts said that the optimistic predictions even topped the 88% level in the second quarter of last year when the industry enjoyed a record tonnage increase, topped all prior quarters surveyed previously by the company and was the first time no one expected a decrease. A second question, again broken down by carriers above and below $25 million, found 90% in both size categories expected rising rates. Richard Mikes went on:

“In the year ahead rates and volumes will rise in tandem, with the remaining question to revolve around the level and adequacy of pricing given the rising costs of fuel, tires, new equipment and drivers.”

Batts and Mikes, both with extensive experience in transportation, directed the survey and analyzed the findings. They state there is clearly a capacity crunch currently seen within the industry, based both on their own queries of carriers and published data, a situation likely to be exacerbated in the coming months. An earlier white paper by TCP found capacity reduced around 15% the past two years and with the rising economy, freight tonnages, coupled with primarily replacement demand driving new purchases, capacity will remain tight for the next couple of years or more.

Details of the TCP survey can be seen HERE.