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Optimism Increases for Future Rate and Volume Growth

June 21, 2013

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A new Transport Capital Partners survey shows better expectations among trucking company executives when it comes to rates and freight volume.

Credit: TCP
Credit: TCP

TCP says this breaks a three-year trend of lowering expectations for volume growth in the second quarter. More carriers expect volumes for the second quarter to hold steady.

Opinions diverge between larger carriers, those with over $25 million in revenues, and smaller carriers. In both groups, 50% expect volumes will increase. However, almost 40% of smaller carriers think volumes will decrease, compared to only 3% of their larger competitors. While 40% of larger carriers expect volumes to remain the same, just 11% of smaller carriers see volumes holding steady. 

“As the economy waits to sort out the cross currents of macro events and the change in Federal Reserve policies, freight volumes struggle to grow significantly,” says Richard Mikes, a TCP partner.

The survey also found a large majority of carriers, 80%, has seen rates hold steady over the past quarter. Optimistically, most carriers, 73%, are also expecting rates to increase in the next 12 months. Both large and small carriers share these positive expectations.

18% percent of carriers have seen rates increase, up from 11% last quarter. However, this is down from the 45% of carriers that reported rate increases a year ago. More smaller carriers than larger carriers have seen rates increase, 25% versus 14%.

“Even with modest improvement in freight demand, carriers are anticipating much needed higher rates from customers,” says Steven Dutro, TCP partner.

More results from the survey are available online

Comments

  1. 1. Dick Gaib [ June 24, 2013 @ 04:12AM ]

    A great starting point would be to kill the old method of paying miles. We need to go to actual miles, over trucking roads, and use the quickest routes. This is a no brainer, it would give drivers the ability to reach the miles needed and be paid for doing it. The companies could then receive more for their miles. The system now is unfair for all, as some customers win and others loose. With the new and more restrictive driving hours, require this. JUST DO IT , TALK TO EACH OTHER AND LOBBY THE REGULATORS, FOR A LAW TO MAKE ALL SHIPPERS USE THIS METHOD. WE AS DRIVERS, HAVE TO LIVE IN THE REAL WORLD, WHY NOT THE INDUASTRY??

  2. 2. Clifford Downing [ June 24, 2013 @ 04:27AM ]

    To Dick's point, the idea is good, the implementation is terrible. Getting the government involved in any way, shape, or form with the rate setting structure is asking for a rattlesnake to guard a pet hamster. I detest any more regulation, regulators, or legislators sticking their collective noses into this business. Seems some will level hatred towards the government getting into things like HOS, but at the next turn, they are crying for government to come rescue them from themselves. Yes, we do live in the real world. And part of that world is we don't have to work in this business. You want to play in this sandbox, you can. If you can't make it, go find another sandbox.

  3. 3. Clifford Downing [ June 24, 2013 @ 04:27AM ]

    To Dick's point, the idea is good, the implementation is terrible. Getting the government involved in any way, shape, or form with the rate setting structure is asking for a rattlesnake to guard a pet hamster. I detest any more regulation, regulators, or legislators sticking their collective noses into this business. Seems some will level hatred towards the government getting into things like HOS, but at the next turn, they are crying for government to come rescue them from themselves. Yes, we do live in the real world. And part of that world is we don't have to work in this business. You want to play in this sandbox, you can. If you can't make it, go find another sandbox.

 

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