As fleets plan for the year ahead for equipment, they are considering engines, electronic onboard recorders and credit availability
, according to Transport Capital Partners' recent Business Expectation Survey for the second quarter of 2010.
"The present surge of freight has spiked interest in equipment contingencies from engines to financing," said Richard Mikes, partner of the transportation mergers and acquisitions and consulting firm.
"Carriers are interested in credit availability for replacing equipment, but larger carriers are more optimistic about the credit outlook," said Lana Batts, managing partner.
According to the survey, two-thirds of carriers believe that credit availability will remain the same, while a fourth look for improvement and a sixth expect it to tighten. The record low interest rates currently are relative to the carriers being able to meet bank criteria to obtain credit along with its price and terms.
Fleets are also focusing on new engines and EOBRs, TCP said.
"Slightly over half the carriers are experiencing increased maintenance costs of 5 percent or more with EPA 2007 engines and are now faced with considering the new 2010 models," said Mikes.
"EOBRs are being tested by about one quarter of the carriers surveyed with only 8 percent report being operational as the industry wonders about what the DOT will do," Batts said.
Another trend in the survey was a high degree of interest in the acquisition of other carriers. Fleets have also been asking about sourcing equipment financing, as well as potential financing for acquisitions for strategic capture of new customers, drivers and in place equipment.
Mikes and Batts directed the survey and analyzed the findings, coupling the results with conversations they hold with carriers and others in the industry. TCP, which specializes in transportation mergers and acquisitions, capital sourcing and advisory services, uses the quarterly survey to collect the insights and opinions of executives nationwide in order to report on the current state of the industry and future expectations.
, according to Transport Capital Partners' recent Business Expectation Survey for the second quarter of 2010.
"The present surge of freight has spiked interest in equipment contingencies from engines to financing," said Richard Mikes, partner of the transportation mergers and acquisitions and consulting firm.
"Carriers are interested in credit availability for replacing equipment, but larger carriers are more optimistic about the credit outlook," said Lana Batts, managing partner.
According to the survey, two-thirds of carriers believe that credit availability will remain the same, while a fourth look for improvement and a sixth expect it to tighten. The record low interest rates currently are relative to the carriers being able to meet bank criteria to obtain credit along with its price and terms.
Fleets are also focusing on new engines and EOBRs, TCP said.
"Slightly over half the carriers are experiencing increased maintenance costs of 5 percent or more with EPA 2007 engines and are now faced with considering the new 2010 models," said Mikes.
"EOBRs are being tested by about one quarter of the carriers surveyed with only 8 percent report being operational as the industry wonders about what the DOT will do," Batts said.
Another trend in the survey was a high degree of interest in the acquisition of other carriers. Fleets have also been asking about sourcing equipment financing, as well as potential financing for acquisitions for strategic capture of new customers, drivers and in place equipment.
Mikes and Batts directed the survey and analyzed the findings, coupling the results with conversations they hold with carriers and others in the industry. TCP, which specializes in transportation mergers and acquisitions, capital sourcing and advisory services, uses the quarterly survey to collect the insights and opinions of executives nationwide in order to report on the current state of the industry and future expectations.
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