More than half of carriers said in a recent survey they are getting an “adequate rate of return,” according to trucking consulting firm Transport Capital Partners.
The fourth-quarter industry survey showed that 54% of carriers said they are receiving what they believe is an adequate rate of return, the highest level for the survey.
TCP cautioned that there could be an issue with how carriers define adequate. “What is adequate for one carrier may be inadequate for another,” the report said.
“For the industry to thrive, and not just survive, a large percentage of carriers must be making adequate rates of return to afford the investment in equipment and support services required by modern supply chains,” TCP partner Richard Mikes said in a statement.
Carriers also said they are not seeing improvement in credit availability, with 75% expecting it to remain the same, according to the survey.
“Credit availability and carrier profitability go hand–in-hand; both are essential to replace aging fleet assets and to grow capacity. Carriers with stronger profitability and cash flows will find credit available and affordable, and will be better positioned to gain market share,” TCP partner Steven Dutro said in a statement.