If Fleets are having a hard time..how bout the poor single O/O?
William B. Cassidy | Jul 12, 2010 1:53PM GMT
The Journal of Commerce Online - News Story
Survey finds limited lending delays replacement of older vehicles
Larger trucking companies appear more optimistic than smaller competitors about their ability to get access to credit, but most carriers expect lending to stay tight.
According to Transport Capital Partners, 22 percent of the larger truckload carriers it surveyed said they expected credit to become more available in the next six months. Only 11 percent of smaller carriers shared their optimism.
Tight credit markets are one of the factors constraining the growth of trucking capacity, as carriers struggle to source credit lines needed to buy new equipment.
"The present surge of freight has spiked interest in equipment contingencies from engines to financing," said Richard Mikes, a TCP partner.
Among carriers with less than $25 million in sales, more companies expected credit to tighten, with 27 percent saying it would be less available in the next six months.
Only 10 percent of larger carriers expected credit to become harder to secure.
The TCP survey reached carriers with revenue from less than $25 million, nearly 40 percent of those surveyed, to more than $100 million, about 18 percent.
Two-thirds of all the carriers surveyed expect credit availability to remain about the same in the next six months, which in general means difficult to find.
The need to obtain new equipment is becoming more urgent for carriers as trucks that weren't replaced during the recession become more costly to maintain.
Slightly over half the companies surveyed said maintenance costs associated with 2007 diesel engines were rising, climbing more than 10 percent in some cases.
Smaller carriers -- those more pressed to find credit -- reported a larger increase in maintenance costs, with 20 percent saying the costs were up 10 percent or more.
William B. Cassidy | Jul 12, 2010 1:53PM GMT
The Journal of Commerce Online - News Story
Survey finds limited lending delays replacement of older vehicles
Larger trucking companies appear more optimistic than smaller competitors about their ability to get access to credit, but most carriers expect lending to stay tight.
According to Transport Capital Partners, 22 percent of the larger truckload carriers it surveyed said they expected credit to become more available in the next six months. Only 11 percent of smaller carriers shared their optimism.
Tight credit markets are one of the factors constraining the growth of trucking capacity, as carriers struggle to source credit lines needed to buy new equipment.
"The present surge of freight has spiked interest in equipment contingencies from engines to financing," said Richard Mikes, a TCP partner.
Among carriers with less than $25 million in sales, more companies expected credit to tighten, with 27 percent saying it would be less available in the next six months.
Only 10 percent of larger carriers expected credit to become harder to secure.
The TCP survey reached carriers with revenue from less than $25 million, nearly 40 percent of those surveyed, to more than $100 million, about 18 percent.
Two-thirds of all the carriers surveyed expect credit availability to remain about the same in the next six months, which in general means difficult to find.
The need to obtain new equipment is becoming more urgent for carriers as trucks that weren't replaced during the recession become more costly to maintain.
Slightly over half the companies surveyed said maintenance costs associated with 2007 diesel engines were rising, climbing more than 10 percent in some cases.
Smaller carriers -- those more pressed to find credit -- reported a larger increase in maintenance costs, with 20 percent saying the costs were up 10 percent or more.