Carriers bullish on freight volumes for 2011

NASHVILLE, Ind. — Two thirds of U.S. carriers expect freight volumes to increase over the next year, according to the latest survey from Transport Capital Partners, LLC (TCP).

The company’s Business Expectation Survey showed strong optimism from carriers in the fourth quarter of 2010 — although down from the optimism high-water mark of the year’s second quarter when nearly 90 percent of survey respondents predicted volume increases.

According to Richard Mikes, a partner at TCP, the hopefulness which characterized the spring has waned in recent quarters as economic growth has slowed. The percentage of optimistic carriers in the fourth quarter (66%) is about the same as it was at the end of 2009.

As for rate increases, over three-quarters of carriers surveyed say they expect rates to rise in the next year.

“TCP’s surveys from the last two years indicate that carriers have become more confident that volumes and rates will increase during the next year, despite the modest drop in the last two quarters,” said Lana Batts, managing partner for TCP.

Mikes said larger carriers tend to be more upbeat than smaller operators.

“More of the carriers over $25 million in revenue saw rates go up in the last three months than did the smaller carriers."

This was reflected in future rate expectations as well, according to the survey.

“Smaller carriers are facing increasing fuel, equipment, and financing constraints and must recover more costs soon,” said Batts.

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