S&P Sees Stable Credit Quality for Most Transport Sectors

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he credit quality of most transportation sectors, including trucking, remained stable in recent months, but some faced significant challenges because of high fuel prices and low-cost competition, credit rating agency Standard & Poor’s said.

S&P credit analyst Philip Baggaley said in a July 16 report on global transportation that trucking industry fundamentals had improved for both the less-than-truckload and the truckload segments because of strengthening demand and im-proved truck utilization as the economy grows.

But operating results for railroads and passenger airlines have been hurt by high fuel prices, congestion problems and competition, he said.

Baggaley said trucking fleets’ focus on cost management and operating efficiencies, coupled with increased volumes and annual rate increases between 5% and 6%, had offset increased labor and benefit costs, as well as higher insurance premiums and equipment prices.

For the full story, see the July 26 print edition of Transport Topics. Subscribe today.