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TRUCKING MARKET * USA - Economy tough on trucking in second quarter
Trucking companies going out of business continued at a record pace in the second quarter...
Grain Valley,MO,USA -Land Line Magazine, by Jami Jones -August 11, 2008: -- ... According to a report released by trucking analyst Donald Broughton... In the second quarter of 2008, 970 trucking companies with five or more trucks went out of business. They join 935 companies that were shuttered in the first quarter... Broughton, managing director with Avondale Partners LLC, reported that 46,000 trucks were idled by the shutdowns in the second quarter – a whopping 2.4 percent of the over-the-road trucks. That brings the total number of trucks sidelined in 2008 to 88,000, or 4.5 percent of the nation’s capacity... He notes that although companies failing in the 2000 to 2001 downturn averaged 20 to 35 trucks in their fleets, in 2008 companies failing averaged more than 45 trucks... Companies falling prey to the tough economic pressures tend to be smaller companies with longer hauls, according to Broughton. Fuel prices and the lack of surcharges that recoup 100 percent of the increased cost of fuel have also played a role on failures in both the first and second quarter... Broughton’s report isn’t exclusively gloom and doom. He did lay out the silver lining for those companies still in business... He predicted that those companies still in the game will soon begin to enjoy better paying freight. Also, with the decline in the number of trucks available to haul freight, it will be easier to keep trucks loaded with that better paying freight...
* Reports conflict about the future of freight
USA -Fleet Owners, by Justin Carretta -Aug 8, 2008: -- The latest freight data from the Freight Transportation Services Index (TSI) and the American Trucking Assns. (ATA) both show slight growth, giving hope to those who feel trucking will soon begin somewhat of a rebound... According to Chris Brady, president of Commercial Motor Vehicle Consulting (CMVC), the consensus is that domestic freight is up slightly, and while it should continue to grow, the pace will be very incremental... Longbow Research transportation analyst Lee Klaskow upgraded the trucking sector from ‘underweight” to “neutral” after finding that 44% of North American truckload carriers expected business for the rest of the year to be positive vs. just 15% during June...
Labels: freight markets
posted by Unknown @ 11:40 AM
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