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

Regardless of capacity, pricing, or the economy, trucking industry regulations are never far from the freight transportation limelight. That is especially evident when it comes to the federally mandated hours-of-service (HOS) regulations. As usual, the current state of HOS remains somewhat fluid. And the reason for that has to do with legislation coming from the Senate Transportation Appropriations legislation that is currently being considered by the Senate.

At last week’s NASSTRAC Conference in Orlando, Fla., LM Group News Editor Jeff Berman caught up with Jack Holmes, president of UPS Freight, the less-than-truckload subsidiary of UPS. On June 30, Holmes will retire from UPS after a 37-year career with Big Brown that saw him rise from the overnight docks in Philadelphia to the executive suite in Richmond, Va.

Having introduced into the California State Senate a new bill designed to give an exemption from sales and use tax for port terminal operators purchasing zero or “near zero-emission” equipment, Lara is trying to advance two agendas.

The notions of “green shoots” or “cautious optimism” in gauging the current state of the economy does not specifically exhibit what is really happening, when assessing how things are actually going, it seems. That was made clear by Bob Costello, chief economist at the American Trucking Associations, at last week’s NASSTRAC (National Shippers Strategic Transportation Council) Shippers Conference and Transportation Expo in Orlando, Fla. last week.

With a 6.8 cent gain to $2.266 per gallon, this week’s average diesel price is at its highest level since the week of December 28, when it was at $2.237 per gallon.

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA