These are Brian Schoenbaechler's ramblings, rants, and raves about his life trying to grow his Small Business.

Tuesday, March 30, 2010

3PL executives tell analysts Trucking recovery on fragile footing

Some 3PL executives met with analysts this week to discuss the state of their company and industries.

The 3PL executives gave the analysts some sobering food for thought. For example, although truckload volumes are above very weak 2009 levels, the executives said none of their customers expect much incremental volume growth as 2010 unfolds. In addition, truckload capacity is not disappearing from the market at a rapid clip, the 3PL executives said. Those observations may come as a surprise to those who thought that enough supply had been taken off the roads so as to spark significant rate increases once demand picked up and began outstripping supply.

As for the rate outlook, the 3PL executives said that while ad hoc, or "spot," pricing had improved over the past four to five months, contract rates "remain under continued assault." One of the 3PLs told the analysts that carriers are cutting rates by an additional 5 to 6 percent on re-bid contracts this year.

Read full article here


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