The recent Third Quarter 2011 Transport Capital Partners Business Expectations Survey finds that carriers' contractor fleets have remained steady over the last three quarters. However, the ability for fleets to expand using contractors has been trending down for the last five quarters.


Forty-one percent of the fleets responding to the TCP survey see their contractor fleets remaining stable, with the same number reported in November of 2010. Since last year, the number of fleets seeking to expand through the use of contractors has trended down from 28% to 22.4%.

"Contractors have been devastated by the recession and higher fuel prices. Consequently they have exited the business in large numbers. Now, the combination of higher priced new equipment, scarce used low mileage equipment, and lack of credit are deterring new or re-entrants," says Richard Mikes, TCP partner and survey director.

"Seventy percent of carriers reported some level of driver shortage, yet fewer are seeing contractors as the answer over the past year," notes TCP partner, Lana Batts. "Fleet size made little difference in these trends except that about 36% of carriers under $25 million in annual revenue reported not using independent contractors, while about 24% of larger carriers reported not using them."

According to Mikes, this quarter's survey reflects the general lack of confidence in the economy with carriers expecting fewer increases in volumes over the next twelve months compared to prior surveys.

"Additionally," he says, "Half of the carriers surveyed do not see enough profit to justify investing in new equipment, and it is no surprise that contractors are not reappearing."

"Our survey confirms that the industry has been stuck in idle, or only moving sideways for the last several months and expectations for the future are lowered accordingly," Batts notes.

For more info on Transport Capital Partners Business Expectations Survey, visit TCP Business Expectations Survey