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April 2, 2013 - Nearly 70 percent of carriers are using or considering elogs

Results from TCP’s first quarter 2013 Business Expectations Survey were highlighted in a recent article by Commercial Carrier Journal. Nearly 70% of carriers surveyed are either already using or considering the use of electronic logs (elogs). Thirty-five percent of fleets are using e-logs on all of their trucks compared to only 25 percent when the question was asked in May of 2012. TCP says that the use of elogs is tied to better CSA scores. The survey also covered the steps carriers are taking to improve their CSA scores, especially since shippers are starting to pay more attention to these scores.  Read the full article to learn more.

The next survey will launch at the beginning of May 2013. Interested carriers can sign up by clicking here.

April 1, 2013 - Carriers shift toward electronic logs

FleetOwner reports on the findings from the first quarter 2013 Transport Capital Partners Business Expectations Survey that found that a growing number of carriers have made the switch to electronic logs (elogs). Thirty-five percent of the carriers surveyed are now using elogs and other carriers are strongly considering. The increase in the number of carriers using elogs may be due to a likely federal mandate. While the Federal Motor Carrier Safety Administration has attempted to mandate the use of electronic onboard recorders (EOBRs) in the past, the implementation of new hours-of-service regulations in July might force a rule to finally pass. TCP Partners Steven Dutro and Richard Mikes were both quoted in the article. Read the full article.

The Second Quarter Business Expectations Survey will launch at the beginning of May. Interested carriers can sign up by clicking here.

March 28, 2013 - 35% of Carriers Use Electronic Logging

As reported by Transport Topics, more carriers are using electronic logging on their trucks than in the past. According to a survey by Transport Capital Partners, 35% of carriers have electronic logging on their whole fleets, up from 25% last May. A majority of truckers are using or testing electronic logging, while 10% said they were considering the new tool, but have yet to implement it.

Read the full report here.

March 27, 2013 - E-Logging, CSA Scores, and Capacity All on the Rise

Citing the Business Expectations Survey, conducted quarterly by Transport Capital Partners, Truckinginfo.com reports that carriers are increasingly installing e-log systems on their fleets. The survey shows that 35% of carriers have implemented e-logging systems on their entire fleet. Just 10% of survey responders report that they have yet to begin implementation.

Another trend from the survey indicates that carriers are making efforts to improve CSA scores, but not without expense. “The cost of compliance, along with decreasing productivity, the corresponding decrease in driver earnings, and the planned tightening of hours-of-service rules are part of the regulatory burden which has both directly and indirectly impacted carriers,” said TCP partner Richard Mikes.

Read the full article at Truckinginfo.com.

February 18, 2013 - Reflections from the Stifel Transportation Conference 2013

Richard Mikes of Transport Capital Partners (TCP) recently attended the Annual Stifel Transportation and Logistics Conference held in Key Biscayne, Florida, chaired by John G. Larkin, Managing Director at Stifel. About 40 publicly-held transportation and logistics companies were in attendance, presenting information on their firms and trends affecting the industry to a larger than last year investor group. Here are his observations from the conference.

 Truckload Carriers Volumes

The general consensus among the presenting carriers is that volumes began flattening in the last half of 2012 and have not recovered in the seasonally slow first quarter. Retailers remain cautious and inventories are managed tightly. The uncertain economic recovery makes future volumes hard to predict. However, there are bright spots in ag equipment, energy exploration and chemicals with construction showing some life. Dry van business remains slow with the seasonal restocking from clothes to turf supplies/equipment and summer recreational merchandise about to begin.

Efficiency and New Strategies

Companies emphasized ongoing and new initiatives in most areas of operations. Most publicly held truckload carriers are no longer “just truckers” but also offering logistics, transportation management, dedicated carriage, 3PL initiatives, and intermodal options.

Focus included reducing costs, enhancing efficiencies, aerodynamics for equipment, and watching natural gas as a potential game changer. Deeper customer interfaces with cross-selling of the increasingly broader array of services were highlighted by many. Collaborative activities with shippers are gaining efficiencies and other mutual benefits.

Equipment Purchases Cautious by Public Carriers

Publicly held carriers in aggregate have reduced their tractor fleet 20% from pre-recession peak levels and are not gaining tractor count, which is in line with TCP quarterly surveys of both private and public firms showing little fleet addition or interest in expansion. While investors favor “asset light” models, discussions of “someone must own assets” were common.  Small fleets, 6 trucks or less, account for 88% of the carriers. Smaller fleets are pressured by aging tractors and tight credit. New tractors have improved miles per gallon (mpg), but at a high capital cost with used trade-in prices flat for the past year.

Rates

Generally, carriers anticipate single digit increases for rates assuming stable capacity and loads “in balance”. However, we may be subject to a freight spike environment pushing them upward. A shipper panel declined to provide much information on rates. The uncertain economy remains the gorilla in the room as an uptick of 3 to 5% in GDP growth will push higher rates.

Drivers the Constraint?

Carriers mentioned driver staffing issues are becoming more critical for the variety of reasons (demographics, lifestyle, wages, and HOS/CSA regs), and are directly now impacting carrier capacity along with a stable fleet base. Driver wages must, and will, increase, but the only question is timing. If construction ramps up this could be sooner rather than later.

Brokers and 3PL Providers

Volumes have recovered and general outlook is for a slow growth environment. The focus appears to be on small to mid-size shippers along with broadening international exposure and competition. Growth rates of 3PL’s were reported at 11.6% over the past 15 years in North America contrasted with 30% in South America and 15% in Asia Pacific markets. Over the same time dedicated carriage grew 7.5% in the US.

 

Have questions?  Contact Richard Mikes at  239-395-2595 or [email protected] for more information or to learn more about the Stifel Transportation Conference 2013.

Interested in learning what other carriers are expecting in the coming months?

Click here to participate in TCP’s First Quarter Business Expectations Survey. 

February 5, 2013 - Natural gas engines starting to catch fire in the truck-fleet market

Natural gas engines, both compressed natural gas (CNG) and liquefied natural gas (LNG) are gaining traction with carriers who are interested in “going green” and spending less on fuel. A recent article by Fleet Owner cites the findings from the 2012 survey on natural gas engines conducted by TCP and ACT Research. Over half of the carriers surveyed are considering at least some natural gas engines in their next purchase.  The article goes on to discuss many of the truck makers and engine builders who are meeting the demand for natural gas.

Want to learn more about the growing trend of natural gas engines? Click here to read the full article.

 

January 24, 2013 - Carriers Hesitate to Replace Equipment

As reported by Truckinginfo.com, the Fourth Quarter 2012 Business Expectations Survey by Transport Capital Parters finds that most carriers plan to be very conservative when it comes to replacing fleet equipment. The survey found that 60% of smaller carriers and 45% of larger carriers plan to replace less than 10% of their fleets. TCP Partner Richard Mikes noted, “Capacity additions have been constrained for some time and linked to shippers’ desire to add dedicated capacity to assure service.” Larger carriers with “adequate profit margins” are more likely to grow, remarked TCP Partner Steven Dutro.

Click here to read the full article.

January 16, 2013 - Carriers Uncertain About Year Ahead

As Washington continues to muddle through the fiscal crisis, carriers are unsure about how government policies might affect them in 2013. The latest Business Expectations Survey from Transport Capital Partners shows that 45% of carriers believe that volumes will remain flat, whereas 44% believe rates will increase and 46% predict that rates will stay the same.

TCP Partner Richard Mikes notes that “continued high fuel costs, inadequate fuel surcharges, and some shippers not recognizing the impact of delays on schedules with constricted hours-of-service rules will force and increase in distressed situations.”

Read the full article at TruckingInfo.com.

October 5, 2012 - BES Survey Points to Limited Growth in Capacity

As reported on Refrigerated Transporter, carriers are not likely to add much capacity in the coming year. According to the quarterly Business Expectations Survey from Transport Capital Partners, the number of carriers expecting to add little or no capacity has remained between 70% and 74% for the past five quarters. TCP Partner Lana Batts cites driver shortages, coupled with CSA and HOS regulations, as having a diminishing effect on equipment purchases.

October 3, 2012 - Freight Carriers Reluctant to Add Capacity

The Third Quarter 2012 Business Expectations Survey from TCP shows that carriers remain slow to add capacity to their fleets. TCP Partner Richard Mikes notes an increase in the used equipment market, while Partner Lana Batts acknowledges the effects of a shrinking driver pool. Read the full article on Automotive World.