The current market outlook for operators of asset-based trucking carriers is mixed and highly dependent on each carrier’s customer portfolio. We cover those dynamics in our weekly Trucking Markets report; suffice it to say that refrigerated carriers handling fresh produce are in the most defensible position, while pneumatic, tank and flatbed carriers operating in the oilfields are most exposed to downside risk.
Apart from market dynamics, other factors affecting asset operators are also mixed. For the carriers reporting data to the TCA’s Trucking Profitability Program benchmarking group, insurance expense as a percentage of revenue ticked down slightly to 3.97%, retreating from the 4% level.
The news is even better on the fuel cost front – diesel rack prices are being suppressed by the chaos gripping global energy markets, while retailers are doggedly holding price. For carriers who levy fuel surcharges based on DOE assessments, the widening spread between those two prices is a positive.
Used truck prices are more of a mixed bag, with prices for 3-, 4-, and 5-year old models moving somewhat independently of each other. Because prices for 3-year old trucks tend to lag the other models by a month or two, we think those asset prices will be flat to down in the near-term.
You have selected content that's only available to members of FreightWaves Passport. As a member, you gain immediate access to the most in-depth and informative freight research available. It's your gateway to continuing education.
Members also get:
- Access to exclusive community dedicated to discussing the most important challenges facing freight.
- Monthly and Quarterly Freight Market reports keeping you informed of industry trends.
- Much, much more!
Click below to learn more and sign up today!
Existing Passport subscribers may log in using the form below.