Credit woes have eased dramatically, survey reveals

DENVER – Credit constraints that hamstrung the trucking industry in early 2009 are largely behind us now, according to the most recent survey conducted by Transport Capital Partners (TCP).

The recent Second Quarter Business Expectations Survey found that over 80% of carriers say they’ve been able to find reasonable credit.

TCP partner and survey founder Richard Mikes said it’s a huge improvement over answers given in the first quarter 2009 when only half the carriers reported reasonable credit.

Nevertheless, said Mikes, the industry’s desire to add capacity remains conservative as most new orders are for replacements.

“TCP expects the second half of 2011 to likely show a greater capacity gap as freight volumes expand and carriers remain conservative on additions” said TCP partner Lana Batts.

Larger carriers (over $25 million in revenue) are more conservative with 32% not adding any capacity compared to 24% reported by smaller carriers.

Thirty-nine percent of carriers intend to add some capacity with one quarter acquiring contractors.

Batts and Mikes note that this level of additions indicated in the survey result in truck supply conditions forecast in an earlier TCP white paper  and are generally still on target favoring carriers. Both partners with extensive experience in transportation directed the survey and analyzed the findings.

TCP couples the survey results with conversations they hold with carriers and others in the industry to present an insightful dialogue on key issues.

Started in the second quarter of 2008, the Transport Capital Partners’ quarterly Business Expectation Survey has become a frequently quoted bell-weather indicator of the American trucking industry by taking the pulse of industry executives across the country. The survey asks trucking company executives core questions every quarter on recent rate trends, future volume and rate expectations, and interest in buying or selling their firms in the future. Topical questions are also incorporated in each survey with past topics including: credit and financing, equipment issues and plans, drivers, new regulations, trade cycles, and other fleet sentiment opportunities and concerns.