Transport Capital Partners survey reports optimistic trucking companies

A survey by Transport Capital Partners (TCP), based on fourth quarter results, has revealed that 51.6 percent of trucking executives believe the economy will improve and freight rates increase in the next 7-12 months

By Ellie Duncan | Tue Dec 15, 2009

The quarterly survey polled about 100 executives from the trucking industry on the economy, freight rates, business volumes and capacity.

39.7 percent of those polled believe a turnaround will happen in the next 13-24 months.

With regard to volumes, 62.4 percent polled expect volumes to increase in the next 12 months compared to the previous 12 month period. Another 33.6 percent expect volumes to remain the same, and just 3.2 percent think they will decrease.

When it came to freight rates, 47.2 percent said these remained the same in the last three months. In addition, 28.8 percent acknowledged a 5 percent drop in rates, while 13.6 percent noted a 10 percent decline.

TCP partner, Lana Batts, said she expects volume recovery in the trucking sector to precede a recovery in rates by six months when the economy does strengthen.

"Nobody has been buying equipment over the last three years, and there will be more trucking bankruptcies in the fourth quarter (2009) and the first quarter (2010), because carriers will not be able to afford to keep trucks on the road," Batts added.

Edited by Jennifer Denby

Source: www.transportcap.com/news.html