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February 15, 2014 - Carriers Continue to Evaluate HOS Impacts

Transport Capital Partners’ (TCP) fourth-quarter survey results showed new Hours of Service rules impacting carrier productivity. TheTrucker.com posted a recent article detailing this impact.

Increases in rates and improved accessorial charges have yet to materialize for many carriers. They are, instead, looking to increase productivity as a means to raising their bottom lines.

However, the new HOS regulations appear to be significantly impacting that avenue of growth.

Seventy-eight percent of carriers reported HOS as having some impact on productivity. Thirty-seven percent say the new regulations will have more than a 5 percent impact.

Amazingly, almost six months after the changes were implemented, 16 percent of carriers still have not determined the impact. 

Read more here.

February 8, 2014 - Carriers Finding Re-Negotiation of Accessorials Challenging

TodaysTrucking.com shared TCP survey results (from the 4th Quarter BES) that show 42% of carriers expecting their customers to resist re-negotiating accessorials.

Fifty percent of smaller carriers and 38 percent of larger carriers expressed pessimistism about accessorials. However, carriers small and large were more positive about re-negotiating detention times – 43 percent expected to re-negotiate.

“Credit availability and carrier profitability go hand–in-hand, both are essential to replace aging fleet assets and to grow capacity. Carriers with stronger profitability and cash flows will find credit available and affordable and will be better positioned to gain market share,” said Steven Dutro, TCP Partner.

Full article here.

August 7, 2013 - New Fleet Investments Unlikely for Many Carriers

Recent articles from TodaysTrucking.com and TruckingInfo.com report that inadequate rates of return are keeping fleets from buying.

They share results from the second quarter TCP industry survey that show only slightly over 50 percent of carriers seeing returns on investments that can justify new equipment purchases. This figure is up just four percentage points from November 2012.

Additionally, one-third of all carriers reported having no current plans to add any new equipment. At this time, replacing aging fleets is the principle driver of most equipment investment.

“Higher equipment costs in recent years, combined with the lower utilization resulting from new HOS rules, will continue to make adequate returns on investment a challenge,” said Steven Dutro, TCP partner.

Read the complete articles here and here.

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.

September 29, 2011 - Carriers Are Taking Accessorial Charges to Shippers

The Journal of Commerce reports online that truckload carriers are taking accessorial charges (one-time fees for special services) to shippers. The article cites findings from TCP’s recent survey which asked carriers about a variety of industry issues, including renegotiation of accesorials. The article mentions that companies like UPS and FedEx Express have long used these charges and 68% of the carriers surveyed plan on renegotiating these fees as well. Click here to read more.

September 15, 2010 - Anticipated Acquisition Activity as Carriers Manuever Changing Industry

An article from TruckingInfo.com notes TCP survey results that project an increase in merger and acquisition activity as carriers attempt to maneuver a changing transportation industry. Read the full article here.

September 15, 2010 - Practical Miles vs. Shortest Miles Formula

DC Velocity writer, Mark B. Solomon, discusses TCP’s finding regarding the change to the “Practical Miles” trucker pay formula from the more traditional “Shortest Miles” formula. Read more.