Subscribe to our free, weekly email newsletter!


Trucking news: TransCore says truck capacity hits a six-month high

By Jeff Berman, Group News Editor
May 24, 2011

Recent data from TransCore indicated that spot market truck capacity recorded its single highest weekly volume in the last six months.

The firm said that truck availability rose 8.0 percent on its DAT Network of load boards, with truck postings for all equipment types seeing gains, including: flatbeds up 8.4 percent; reefer vans up 8.3 percent, and dry vans are up 4.9 percent from the week of May 7 to the week of May 14.

TransCore also reported that with equipment capacity up, load volume saw a drop-off, with the overall load-to-truck ratio falling from 7.6 to 6.9 loads per available truck, and the ratios for reefers, dry vans, and flatbeds down 13 percent, 8.8 percent, and 7.5 percent on a week-to-week basis.

While spot market truck capacity is up, the industry is still up against some significant challenges, according to a recent research report from Avondale Partners analyst Donald Broughton.

“Unfortunately we see increases in operating costs as outpacing increases in rates in the short to intermediate term,” wrote Broughton. “Labor, fuel, depreciation / equipment rent and maintenance—all the largest line items a trucking company faces are accelerating faster than they can be recovered in rates in an environment of declining asset utilization. Unfortunately, costs don’t drive pricing; the balance (or imbalance) between capacity and demand drives pricing. Certainly demand is continuing to grow (although now at a decelerating rate), and while the market is tight, incremental capacity additions from a variety of factors have lowered the ceiling for pricing gains.”

And while the overall market is improving on an annual basis, there has been an ongoing trend of moderation in volumes of late, according to the American Trucking Associations’ (ATA) monthly tonnage reports and the Cass Information Systems Freight Index.

“We are at a very critical juncture right now, and I don’t know which way things are going to go,” said Mike Regan, CEO & Chairman of the Board, TranzAct Technologies, the author of LM’s “It’s Personal” blog. “With gas prices [mostly] rising and consumers pulling back, one of the issues you need to take a look at is the fact that consumers filling up their tanks once a week at these increased prices makes an impact on spending and freight volumes.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA