Truck News

News

FTR Freight Transportation Conference offers subdued outlook

INDIANAPOLIS, Ind. -- Despite reports that the Canadian economy is bouncing back quicker than expected, i...


INDIANAPOLIS, Ind. — Despite reports that the Canadian economy is bouncing back quicker than expected, it may be a long road back to prosperity for the US trucking industry, according to speakers at FTR Associates’ annual Freight Transportation Conference.

 

The two-day conference, held Aug. 25-27, featured speakers from the Federal Reserve, Wall Street, freight carriers, shippers, suppliers and consultants as well as FTR itself.

 

Highlights included:

 

* The US recovery will be slowed by subdued consumer spending, leading to continued high unemployment and slow growth for freight volumes

 

* The US is currently at the bottom of its steepest freight decline since 1980-1982, with freight down 15% from the previous peak.

 

* It’ll be a buyer’s market for freight transportation services in the near-term, as depressed volumes and excess capacity continue to rule, putting continued pressure on carrier margins.

 

* High levels of excess capacity will continue, as US banks are still reluctant to foreclose on heavily-discounted assets from near-bankrupt carriers.

 

* Carriers may not reach “equilibrium” until 2011.

 

* Equipment sales will lag the freight recovery and may not reach the peak 2006 levels for a decade or more.

 

To be invited to next year’s conference, contact hlile@ftrassociates.com at FTR.


Truck News

Truck News

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.
All posts by

Print this page
Related Articles
TruckNews
TodaysTrucking


Have your say:

Your email address will not be published. Required fields are marked *

*