Skip to content

Carrier Survey Finds Rates Up For Majority

Average freight rates continue to rise, according to the First Quarter Business Expectations Survey by Transport Capital Partners, with larger carriers reporting smaller increases than the smaller companies.

Most of the rate increases were less than 5 percent. The larger carriers reported seeing more rate increases in the 1-5 percent range than did smaller carriers. Smaller carriers reported more rate increases in the 5-15 percent range.

Rates are not the complete picture, however. Seventy percent of the respondents said fuel surcharges are not covering costs.

“This was up substantially from the first quarter last year when half said they were not,” said Richard Mikes, TCP partner. “This is not surprising given that during the time period the DOE reported fuel prices increasing on a daily basis and up 70 plus cents over the year.” Carriers with over $ 25 million in revenue by a slightly bigger percentage reported that fuel costs are out stripping fuel surcharge recoveries.

The other side of line-haul rates are accessorials. Eighty percent of the respondents said that accessorials would be on the table as well as rates in their renegotiations with shippers.

“Not surprisingly, the largest category targeted by carriers was fuel surcharges. which rose from 13 percent saying this would be a topic in August 2010, to 30 percent saying it would be now,” said Mikes.

Detention times were the second most mentioned accessorial by 15 percent of the carriers. With equipment utilization tight and increased emphasis on compliance with hours of service, shippers are going to have to pay for tying up equipment and drivers. According to TCP, carriers more likely to assign trucks to shippers who will work with them to minimize turn around times and improve asset utilization.

The TCP survey also found that 40 percent of the carriers report that broker freight services account for less than 5 percent of their revenues and that 35 percent report 6-15 percent of their revenues from brokers. Only a quarter of carriers rely on brokers for over 16 percent of their revenues.

“This reflects the traditional reliance on brokers by smaller carriers for return hauls as their outbound length of haul increases and improved technology such as electronic load boards on cell phones, and laptops are available,” said TCP partner Lana Batts. She noted that the survey shows that carriers under $25 million in revenue size use more brokers. Both Mikes and Batts envision a potential shift over time to a more direct connection between carriers, shippers and brokers with the advent of real time electronic bidding on loads by pre-qualified carriers.

For more information:

Printer Friendly Version

Email This Story

Bookmark and Share

Industry : Related News

4/27/2011 – Carrier Survey Finds Rates Up For Majority

Average freight rates continue to rise, according to the First Quarter Business Expectations Survey by Transport Capital Partners, with larger carriers reporting smaller increases than the smaller companies….

4/27/2011 – Used Truck Market Shows Price Rises, Higher Miles

The upward price trend of used Class 8 commercial vehicles that began in early 2010 continued into March 2011, according to ACT Research. The reported average sales price increased 6 percent from February levels….

4/27/2011 – Positive Industry Outlook Tempered by Rising Operating Expenses

Nearly three-quarters, 71 percent, of trucking company executives surveyed by GE Capital, Transportation Finance expect business conditions to improve in 2011, but they are concerned about the impact of external and internal factors on their profit margins….

4/27/2011 – ATA Tonnage Index Rises 1.7 Percent in March

The American Trucking Associations’ advance seasonally adjusted For-Hire Truck Tonnage Index increased 1.7 percent in March after falling a revised 2.7 percent in February. The latest gain put the seasonally adjusted index at 115.4 in March, the highest level since January of this year…

4/21/2011 – Heavy-Duty Order Backlog Approaches 108,000 Units

Strong order volume pushed the Class 8 backlog to almost 108,000 units in March, according to ACT Research….

4/20/2011 – Trucking Companies Relying Less on Broker Services

Carriers are using less broker services, another sign of tightening capacity, according to a survey by Transport Capital Partners.

The recent First Quarter Business Expectations Survey by the transportation advisory firm found 87 percent of carriers said they have used less broker services during the past three months….

4/15/2011 – ATA: Increased Hiring and Rising Turnover Indicate Economic Recovery

Hiring in the trucking industry picked up in the fourth quarter of 2010. Coupled with an increase in the turnover rate for linehaul truckload drivers, this portends increased demand for drivers as the economy recovers….

4/13/2011 – Commercial Vehicle Market Strength to Continue Through 2011 and 2012

The most recent data continues to reflect improved demand across all segments of the heavy-duty commercial vehicle market.

Fundamentals, including pent-up demand resulting from deferred replacement, tight freight-carrying capacity, improved fleet financial performance and some easing in credit availability, will combine to support an upcycle for the market, according to ACT Research….

4/11/2011 – Virginia Tech Transportation Institute Creates Driving Healthy Resource

Researchers at the Virginia Tech Transportation Institute in the Center for Truck and Bus Safety have created the Driving Healthy resource network on a website, Facebook, and Twitter for commercial motor vehicle drivers….

4/8/2011 – TCP Carrier Survey: Excellent Rates and Volumes Expected

The recent First Quarter Business Expectations Survey completed by Transport Capital Partners found 92 percent expecting volume increases in the next 12 months….

4/5/2011 – Hub Group Acquires Exel Transportation Services

Hub Group has purchased Exel Transportation Services for $83 million before post-closing adjustments. ETS is now a wholly owned subsidiary of Hub Group, operating independently under the name Mode Transportation….

4/4/2011 – Canadian Professor to Research Trucker Health

A professor at the University of Moncton in the Canadian province of New Brunswick is launching a study of the health habits of 1,000 truck drivers….

4/1/2011 – Daimler Exec: Production Ramp-up Won’t Meet Demand

LOUISVILLE, KY – Noting that “Everyone wants me to be the fortune teller here at the show,” Daimler Trucks North America President and CEO Martin Daum predicted U.S. Class 8 sales of 153,000 for 2011, lower than we’re hearing from other OEs. The reason? Truck production capacity won’t be able to ramp up as fast as demand….

4/1/2011 – ArvinMeritor Changes Name to Meritor

ArvinMeritor has officially changed its name to Meritor. Meritor’s ticker symbol on the New York Stock Exchange is now MTOR….

3/28/2011 – Class 3 Registrations Lead Improved January Numbers

New commercial vehicle registrations, Class 3-8, in January were 32,175 units, an increase of 11.6 percent from January 2010 and about 1 percent higher than December 2010, according to Polk….

3/21/2011 – Volvo Trucks North America and UAW Reach Tentative Agreement

Volvo Trucks North America announced Friday that the company and the United Auto Workers reached a tentative agreement on the terms of a new 5-year agreement that would cover approximately 1,300 UAW members at the New River Valley, Virginia, plant….

3/18/2011 – Navistar Considering Reopening Ontario Plant

Commercial truck manufacturer Navistar International said it could decide by summer whether it will need to restart an idled assembly plant in Canada….

3/15/2011 – Berkshire Hathaway to Buy Lubrizol for $9.7 billion

Berkshire Hathaway announced it’s buying Lubrizol, which among other things makes additives for fuel and oil, for about $9.7 billion — $135 per share in an all-cash transaction, one of the largest acquisitions in Berkshire Hathaway history….

Emil Estafanous, CPA, CFF, CGMA