Transport Capital Partners, LLC (TCP) has recently completed its Business Expectation Survey for the second quarter of 2010, which found that 88% of carriers surveyed expect volumes to increase over the next year, and 84% of the carriers expect rate increases over the same period.
“The clear message of all the respondents was that their outlook for our industry has improved tremendously,” said Richard Mikes, TCP partner.
TCP uses the quarterly survey to collect insights and opinions of executives nationwide in order to report on the current state of the industry and future expectations. TCP’s surveys over the past six quarters show carriers have become more confident that volumes will increase during the next 12 months; this was particularly evident in the last quarter.
“Carrier answers show a high level of optimism that is reflected in the general upward swing of the economy,” said Lana Batts, managing partner for TCP. Revenue, tons, and miles are all increasing according to various industry sources.
“These positive notes are built on the past quarter when 45% of the carriers indicated that rates had increased, contrasted with last quarter when only 9% said rates had gone up,” said Mikes. “In particular, the supply demand dynamics have rapidly shifted to the truckers favor after the depressed years with current rates rising and expectations for better months ahead.”
Of carriers with more than $25 million in revenues, 94% expect business volumes to increase over the next 12 months, with 80% carriers under this level had similar expectations. Of the larger carriers, 53% experienced rates increases while 33% of the smaller carriers reported increases. Overall, carriers regardless of size are optimistic about future rates.