![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
PROGNOSIS * USA - Truckers Hear Cautious Optimism About Business Climate
Truckload carriers are running the anchor leg of a brutal two year race
Rogers,ARK,USA -The Morning News, by Kim Souza -May 8, 2008: -- ... Acording to Donald Broughton, transportation analyst with Avondale Partners... The Wall Street analyst spoke to about 200 Arkansas trucking executives attending the Arkansas Trucking Association conference Thursday in Rogers... Broughton predicts the worst is about over in terms of weak freight demand that has helped to drag down profits among carriers of all sizes and classifications for six fiscal quarters... Fuel costs, Broughton said, are a demand problem, not a supply problem and relief is not expected any time soon. He told the truckers that energy costs were not a catalyst for weak freight demand. "The days of $40-per-barrel oil are history, because demand from developing countries is expected to increase and it will be a few years before those countries can develop needed fuel efficiencies," Broughton said... Broughton told the group that traditional truckload carriers that have continued to stay afloat because of management efficiencies could find more strength by the end of the year as failure rates among less-fortunate carriers are escalating... According to Broughton, less-than-truckload (LTL) carriers could see some excess capacity relief by consolidation among two of the sector's largest players before the end of the year. He predicts UPS will likely purchase a large LTL carrier and he predicted the possible failure of another large unionized LTL carrier... Broughton's long-term survival guide for traditional carriers includes:• Eliminating deadhead - running empty trucks - is crucial because no fuel surcharge can be assessed on those loads.
• Partnering with a railroad for longer haul business, also known as intermodal.
• Using brokerage operations to add flexibility.
• Utilize technology for visibility and planning loads.
• Steal shamelessly good ideas from the best competitors.
Labels: markets prognosis
posted by Unknown @ 9:43 AM
0 Comments:
Post a Comment
<< Home