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October 26, 2013 - Capacity Additions Remain Moderate

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.

August 20, 2013 - Two-Thirds of Carriers Plan to Boost Capacity

While the growth is moderate, around two-thirds of motor carriers do plan to increase capacity in the next 12 months. A recent Transport Topics article, referencing the most recent TCP trucking industry survey, shares this data.

Additionally, smaller carriers are more optimistic than larger carriers in their buying plans. Thirty-six percent of smaller carriers intend to build capacity by more than 5%. Only 19% of larger carriers plan such additions.

Read the articles from Transport Topics online and in print.

August 19, 2013 - Truck Capacity Growth Expected to be Modest

A recent article from FleetOwner.com sites results from TCP’s Second Quarter Business Expectations Survey.

The survey revealed that, although 65% of carriers are planning to add capacity, those additions will most likely be conservative. More than 75% of carriers plan to add little (1% to 5%) or no capacity in the next 12 months.

“Carriers continue to voice concerns about the ‘headwinds’ impacting operations and returns,” stated TCP Partner, Richard Mikes.

The piece continues by referencing data from the Bureau of Economic Analysis and from the Department of Labor’s recent jobs report that mirrors trends in the trucking industry – slow, conservative growth, and cautious optimism.

Read the full article here.

August 8, 2013 - Hiring Qualified Employees at Critical Positions Proving Difficult

A recent article from TruckingInfo.com sites data from the second quarter TCP survey showing carriers having trouble finding qualified employees and drivers.

In the survey, sixty-five percent of carriers expressed difficulty finding qualified maintenance technicians. Furthermore, 30% stated they are having problems filling operations staff and fleet manager level positions.

“Good employees, at all levels, have always been the lifeblood of the industry,” says TCP partner Richard Mikes. “Now, as we see growth in demand on the horizon, excellent human resource management is critical.”

Carriers, because of these shortages of drivers, technicians, and fleet managers, remain concerned about adding capacity at this time. Seventy-percent of larger carriers, and 50% of smaller carriers, in the survey indicated they were having trouble finding qualified technicians.

Click here to read the full article from TruckingInfo.com.

August 6, 2013 - Larger Carriers More Positive About Renegotiating Accessorials

Forty-three percent of all carriers believe they will be able to renegotiate detention pay, up significantly from the November 2012 TCP survey. This increase is most likely in response to recent changes in hours of service regulations.

However, small carriers are more pessimistic than larger carriers on accessorials. Sixty-four percent of those smaller carriers anticipate no relief in charge negotiations.

“As freight demand grows, shippers who need consistent service will need to assist carriers in gaining operational efficiency and adequate compensation. Larger carriers are more confident they are positioned to achieve this customer cooperation,” stated TCP Partner Richard Mikes.

For the full article from OverdriveOnline.com, click here.

August 5, 2013 - Rates of Return Still a Concern for Trucking Industry

Results from TCP’s second quarter 2013 Business Expectations Survey were highlighted in a recent article from FleetOwner.com.

Truck capacity is tightening, but many carriers are still not earning a rate of return large enough to warrant an expansion of their fleets. Stagnant cargo volumes combined with higher operating and equipment costs will likely force carriers to hold back expansion efforts for the foreseeable future.

Read the full article here.

July 24, 2013 - New HOS Leading to Tightening Capacity

TruckingInfo.com references data from the TCP second-quarter industry survey in their recent article. Survey results showed that almost 40% of carriers are expecting utilization to lower more than 5%. Just over 38% of carriers expect under a 5% change while only 3% expect no impact whatsoever. Strikingly, almost 19% of carriers have still not determined the full impact of these new regulations. Click here to read the full article.

July 23, 2013 - Three-Quarters of Carriers Expecting Lower Utilization

TheTrucker.com reports that, with new hours of service regulations, in effect on July 1st, approximately 75% of carriers are expecting utilization to lower. The way shippers work to minimize the impact of these changes will also affect this tightening capacity.

“This potential reduction in truck capacity is hitting at the same time as spot rates are climbing, reflecting a stronger demand in June. Rates will likely increase further in the months ahead,” noted Richard Mikes, TCP Partner.

Full article here.

July 22, 2013 - Current State of the Truckload Industry

A recent conference call hosted by Stifel featured Transport Capital Partners Managing Partner, Dr. Richard Mikes. In the call, Mikes suggests that fairly flat demand and supply point to an upcoming capacity shortfall in the truckload industry. Furthermore, tightening supply and demand is increasing the potential for future rate increases. To read the full transcript, click here.

June 6, 2013 - Possibility of a Capacity Shortfall Increasing

An article from fleetowner.com reports that with rates still largely flat, much of the TL segment appears to be stalling on expanding capacity. However, a trucking capacity crunch could still be offset by capacity growth within the private fleet segment. The posting sites comments by TCP partner, Richard Mikes from his recent webinar hosted by Wall Street investment firm, Stifel Nicolaus. To read the full article, click here.