Your most important decisions deserve the most qualified advisors.

News

April 5, 2013 - Mixed Results on 2010 Engines from Truckers

There are mixed results from truckers on the new 2010 engines versus 2007 engines. TheTrucker.com shares findings from Transport Capital Partners’ first-quarter 2013 Business Expectations Survey. Over half of the carriers surveyed say that fuel economy has improved with new engines, but almost 40% report that there has been no change.

“Carriers differ in their measurement systems and tracking procedures, but the real story here is that very few carriers have seen a decline in fuel economy with the 2010 engines. Most of the carriers we talk to have reported overall improvement in miles per gallon in recent years from a combination of technology and training efforts,” states Steven Dutro, TCP Partner.

Read the full article to learn more.

Would you like to share your experiences and expectations with others in the industry? Click here is you are a trucking company executive or owner interested in participating in the next survey.

 

April 4, 2013 - Mixed Reports from Carriers on 2010 Engines

Carrier feedback on 2010 engine performance is mixed according to TruckingInfo.com. Almost half of the carriers surveyed in Transport Capital Partners’ First Quarter Business Expectations Survey report improved fuel economy, but forty percent state that there has been no change. Nearly 60% of large carriers (more than $25 million in revenue) say fuel economy has improved, compared to only 32% of small carriers. “The differences in these responses may simply represent differences in measurement and tracking,” says Richard Mikes, TCP Partner. “Significantly, very few carriers report lower maintenance costs for the 2010 engines, and the majority of carriers we know say these costs have increased.” Read the full article 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 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.

March 20, 2013 - Dutro Quoted About Capacity Expectations

Steven Dutro, TCP managing partner, was recently quoted in an article by Transport Topics about Transport Capital Partners’  First Quarter 2013 Business Expectations Survey. The survey that found that almost two-thirds of carriers plan to increase capacity in the next 12 months. TCP believes that the increases in capacity will most likely be intermodal, dedicated carriage, and other specific business lines.

“Going into the recession, publicly owned carriers cut trucks 20% to 25%, and they have not added back more. Most trucks are being sold as replacements,” Steven Dutro, TCP partner, said in a statement.

For more information about the survey, visit the survey page: https://transportcap.com/industry-survey.

To read the full article, click here.

March 14, 2013 - Increasing Rates and Profits Likely, Say Analysts

According to multiple trucking industry researchers, economy conditions point towards an increase in rates and profitability. According to the Business Expectations Survey, conducted quarterly by consulting firm Transport Capital Partners, two-thirds of respondents are “optimistic” that volumes and rates will increase over the next year.

“With the present tight supply of trucks, an increase of just 1% to 2% over forecasted GDP growth could spike rates upwards at any time, which would help to cover costs,” noted TCP partner Richard Mikes.

On the other hand, TCP partner Steven Dutro suggested that the limited availability of drivers and impending HOS rules could damper the benefits of a slowly recovering economy.

Read the full article at FleetOwner.com.

March 7, 2013 - Transport Capital Partners Makes Donation to TCA Scholarship Fund

At the recent Truckload Carriers Association (TCA) Convention in Las Vegas, Transport Capital Partners (TCP) was pleased to make a contribution to the TCA Scholarship Fund. The fund provides up to $6,000 per year scholarships to full-time college students associated with the truckload industry. TCP is excited to invest in the next generation of leaders in the trucking community. For the 2012-2013 season, TCA provided scholarships to 24 students in our trucking community. To learn more about this year’s recipients and the TCA scholarship fund, click here.

OLYMPUS DIGITAL CAMERA

TCP Partners Miller Welborn, Jim Parham, and Steven Dutro with TCA Representative

March 5, 2013 - Batts quoted about trucking acquisitions on the increase

Lana Batts, Partner with Transport Capital Partners (TCP), was recently quoted in an article by TruckingInfo.com about the increase in fleet acquisitions and mergers in recent months.  TCP is an advisory firm that facilitates merger and acquisitions for trucking companies. According to Batts, “we are just at the beginning of the cycle” for M&A activity.  There are a number of businesses that are currently looking to sell, and it looks like this will continue for the forseeable future. Batts also says that the “uncertainty about the number of taxes that carriers pay, such as the ‘Obamacare’ tax increase, fuel taxes, tolls, etc., have many carrier executives scratching their heads and wondering if they should stay in the business.”

TCP recently conducted its first quarter Business Expectations Survey which included questions about carriers’ expectations for buying or selling a company in the next 18 months. These results will be released in the next few weeks.

To read the full TruckingInfo.com article, click here.

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 4, 2013 - More Carriers Willing to Hire Younger Drivers to Combat Driver Turnover

Transport Topics recently reported on the findings of TCP’s fourth quarter Business Expectations Survey that found that 51% of carriers are planning to hiring younger drivers to offset recruiting difficulties and driver turnover. Recent reports from the American Trucking Associations show that driver turnover is at 100%. Over a third of carriers responding to the survey already hire younger drivers and “carriers are looking for ways to attract quality, long-term drivers”. Click here to read the full article.