(Transport Intelligence – Cathy Roberson)
After
experiencing over five years of over-capacity, falling rates, and one of the
worst recessions in recent memory, the US trucking industry is
experiencing a return to financial success. The industry is now commanding rate
increases that appear to be holding with most customers. Industry analysts
expect rates to increase at least 5% this year due to a number of factors:
Capacity, regulatory changes and rising fuel costs.
For 2011, motor carriers may have found their “sweet spot” as supply now
appears to be at equilibrium with demand. From 2006 to 2009, 18% of short-term
Truckload (TL) capacity was estimated to have left the market. For
Less-than-Truckload, the figure was 8%. Avondale Partners LLC estimated that
some 11,000 trucks were withdrawn from the road during Q2 2010 as a result of
companies shutting down their businesses and 33,660 trucks pulled off from the
road Q1 2010. Large motor carriers, such as JB Hunt, cut capacity, to match
demand. From 2006-2010, the company shrank its tractor base in its Truckload,
Intermodal and Dedicated divisions by 18.4%. Read more here (subscription required).
