WASHINGTON — Carriers in the U.S. are still scrambling to get a hold of their cash flow, with more than 50 percent saying their receivables are up, according to Transport Capital Partners‘ fourth quarter Business Expectation Survey.

TCP also reported less use of brokers, with 59 percent of larger carriers using less broker freight, while 49 percent of small carriers are doing so.

"The number of carriers using brokers has dropped dramatically from two quarters ago, with only 40 percent saying they are using more broker freight, compared to 65 percent in February," said Lana Batts, a managing partner at TCP.

"The cash pressure is reflected in only 80.2 percent of carriers, who report they are current on equipment payments, and an additional 11 percent that have had lenders modify payments," Batts said. "Six months earlier 90 percent were current and 4 percent were current after modifications."

In addition, some carriers said they were making some adjustments in their type of business, but two-thirds are sticking to the same in type of haul, type of equipment and commodity.

The good news is that in comparison to February, about half as many carriers are considering leaving the industry.

"The bottom line is that one in eight carriers have given serious consideration to leaving the industry if tonnage does not increase in the next six months, with 1 in 4.5 carriers under $25 million in revenue
considering it," said Richard Mikes, a managing partner at TCP.

— via truckinginfo.com