Latest Quarterly Shippers’ Survey

(Supply Chain Digest)

Some Signs of Truckload Capacity Tightening, Continued Move of Freight from Truck to Rail

With the collapse of Bear Stearns, we were glad to see top-notch transportation industry analyst Ed Wolfe move forward with his own firm, Wolfe Research, and that he is continuing the always informative Shippers Survey he published for many years at his old firm. It is now called The State of the Freight, and the results from the Q2 2008 survey of some 200 shippers is now out.

One of the more interesting findings is that shippers perceive tightening in terms of truckload carrier capacity, after almost two years of increasing perceptions of overcapacity that reached record levels for the 7+ year history of the report.

Now, Wolfe Research says, “the truckload market has reached a state of equilibrium… and expectations are for further tightening.” Only 38% of shippers said they thought the TL market was characterized by “overcapacity,” versus an amazing 75% who said the same in Q1. 35% see tight TL capacity, while 27% saw balanced supply and demand.It appears quite likely that the substantial number of carriers and independents exiting the market is having an impact on bringing capacity back into balance even in the face of a slow growth economy, and “after two years of a TL market awash with trucks.” Read more here.