Carriers nearly unanimous on freight volume & rate hikes
DENVER, Colo. — About 92 percent of carriers are expecting freight volume increases in the next 12 months, according to the latest Business Expectations Survey by Transport Capital Partners.
The level of optimism topped all prior quarters surveyed – including the 88-percent level in the second quarter of last year when the industry enjoyed record tonnage increase – "and for the first time not one expected a decrease," noted Richard Mikes, TCP Partner.
As well, 91percent of carriers said they anticipate rate increases in the year ahead.
"Rates and volumes will rise in tandem, with the remaining question to revolve around the level and adequacy of pricing given the rising costs of fuel, tires, new equipment and drivers," said Mikes.
Carriers both below and above $25 million seemed to agree of volumes and rates.
TCP’s Lana Batts sees the capacity crunch as likely to exacerbate in the coming months.
An earlier white paper by TCP found capacity reduced around 15 percent during the past two years. With the improving economy, freight tonnages coupled with only replacement demand of equipment, capacity will remain tight for the next couple of years or more, she said.
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