Carriers are adding capacity but the growth remains conservative, says a recent article from TruckingInfo.com.
Using current TCP survey results, the article states that carriers expecting capacity additions of under 5% have increased, from 22% in February 2011 to 45% today. Carriers intending to add more capacity – i.e. 6-10% – have decreased, from 25% in February 2011 to 15% today.
In this quarter’s survey, smaller carriers were more conservative than larger carriers in their buying plans. Only 15% of smaller carriers intend to add more than 6% capacity, compared with 23% of larger carriers.
Smaller carriers are also less optimistic about volumes. It is thus unsurprising that they are less likely to add capacity. These smaller carriers may also be having a harder time finding financing for expansion than their larger competitors.
“Tight credit remains a challenge for a lot of businesses, particularly for truckers, and especially those not well positioned,” observed Steven Dutro, TCP Partner.
Full article here.
