Survey: trucker interest in technology varies

Transport Capital Partners, LLC (TCP) recently completed its Business Expectation Survey for the 2010 second quarter and found that carriers surveyed are considering engines, electronic on-board recorders (EOBRs), and credit availability as they plan for the year ahead for equipment.

“The present surge of freight has spiked interest in equipment contingencies from engines to financing” said Richard Mikes, TCP partner.

Credit availability certainly is a concern. “Carriers are interested in credit availability for replacing equipment, but larger carriers are more optimistic about the credit outlook,” noted Lana Batts, managing partner for TCP.

Two-thirds of carriers believe that credit availability will remain the same, a quarter of them fourth look for improvement, and one sixth expect credit to tighten. The record low interest rates currently are relative to the carriers being able to meet bank criteria to obtain credit along with price and terms.

Discussion still remains over the 2007 engines and 2010 engines. Mikes explained that in the recent survey, “slightly more than half of the carriers are experiencing increased maintenance costs of 5% or more with EPA 2007 engines and are now faced with considering the new 2010 models”.

At the same time Batts says, “EOBRs are being tested by about one quarter of the carriers surveyed with only 8% reporting that EOBRs are fully operational in their fleets. Most of the industry is still wondering what the Department of Transportation will do.”

Both Batts and Mikes suggested that the survey responses indicating a high degree of interest in the acquisition of other carriers are reflective of increased activities on the buy side at TCP. Another trend are carrier inquiries regarding equipment financing sources, as well as potential financing for strategic capture of new customers, drivers, and in-place equipment.