Carriers' Volume Expectations Dip as Economy Falters



Results from Transport Capital Partners’ (TCP) Third Quarter 2012 Business Expectations Survey show that much like 2011, the optimism expressed in the first quarter was tempered by the reality that the economy was likely to remain questionable for the year ahead.

The percentage of carriers expecting volumes to increase has been trending downward since a high of 92% in February of 2011, with now 50% expecting volumes to increase this quarter. Moreover, the percent expecting volumes to decrease was the highest it has been since August of 2009, with twice as many smaller carriers as larger carriers (11% versus 5%) expecting volumes to decrease.

The percentage of carriers expecting business volumes to remain the same over the next twelve months jumped from 26% last quarter to 43% this quarter. “Half the carriers see the glass as half-full amidst tepid consumer expectations, flattening load growth, and more caution in general as the election rhetoric rises,” observed Richard Mikes, TCP partner and survey leader.

Expectations for rates mirror the carriers’ expectations about volumes, as the fleets remain static. In fact, for the last six quarters, carriers’ expectations about rate increases have trended downward from 91% in February of 2011 to 64% this quarter. Yet, the number expecting rates to decrease has been fairly constant for the same six quarters.

The number of small carriers expecting rates to increase, however, is 28% higher than larger carriers (67% versus 52%). “Make no mistake, rates have been demand-driven the past three years with a flat supply of trucks. Smaller carriers are now seeing opportunities flowing their way,” emphasized Lana Batts, a TCP partner reviewing the survey results and industry comments.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

No tags available

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com