Carriers Confident Heading into 2012 - Source Trucking Info

Carriers Confident Heading into 2012

CHATTANOOGA, TN — Looks the majority of carriers are optimistic heading into 2012. The Transport Capital Partners (TCP) 4th Quarter 2011 Business Expectations Survey found that 61 percent of carriers are expecting volumes to increase, with only 7 percent bracing for a decrease. TCP partner Richard Mikes said "Carriers shared a higher level of confidence despite the roller coaster ride reflected in stock market over the last quarter.” The survey volume outlook also aligned with the majority of carriers reporting freight rates moving up over the last three months. “Freight rates in the spot market are generally upward, according to many sources, as capacity remains flat and volumes are pushing upward in the industry,” noted Lana Batts, TCP Partner. Three-fourths of carriers surveyed expect rates to increase in 2012. “Most economists are seeing growth in the economy, albeit it still slow. This is pushing more freight on to a very limited truck base, with shippers and brokers scrambling for trucks as carriers phones ‘ring off the wall,” Mikes said. Still though, carriers are cautious about adding trucks, according to other parts of the survey yet to be fully analyzed. “The industry cut 15-20 percent of their capacity by not buying new trucks," Batts pointed out, "and most carriers and dealers are telling us that the new surge in orders is primarily to replace the aging national fleet, not to add more capacity.”

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