Optimism for future rate and volume growth increasing, says Transport Capital Partners’
Only 3 percent of the larger carriers surveyed by Transport Capital Partners think volumes will decrease over in the next quarter. (The Trucker file photo)
The Trucker News Services
WINDSOR, Colo. — Optimism for future rate and volume growth is increasing based on Transport Capital Partners’ second-quarter 2013 business expectations survey.
Results from the survey break a three-year trend of lowering expectations for volume growth in the second quarter as more carriers now report expecting volumes for the second quarter to hold steady, according to TVC Partner Richard Mikes.
Opinions diverge between larger carriers (over $25 million in revenues) and smaller carriers.
In both groups, 50 percent expect volumes will increase.
Almost 40 percent of smaller carriers think volumes will decrease while only 3 percent of their larger competitors expect a decrease.
While 40 percent of larger carriers expect volumes to remain the same, just 11 percent of smaller carriers see volumes holding steady.
“As the economy waits to sort out the cross-currents of macro events and the change in Federal Reserve policies, freight volumes struggle to grow significantly,” Mikes said.
A large majority of carriers (80 percent) have seen rates hold steady over the past quarter. Optimistically, most carriers (73 percent) are also expecting rates to increase in the next 12 months. These positive expectations are shared by both large and small carriers.
Eighteen percent of carriers have seen rates increase, up from 11 percent last quarter. However, this is down from the 45 percent of carriers that reported rate increases a year ago. More smaller carriers than larger carriers have seen rates increase, 25 percent vs. 14 percent.
“Even with modest improvement in freight demand, carriers are anticipating much-needed higher rates from customers,” says Steven Dutro, TCP partner.
The next Business Expectations Survey will launch in August 2013. Carriers interested in participating should visit transportcap.com/industry-survey for more information.
For more information, visit transportcap.com.
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