CCJ

November 2015

Fleet Management News & Business Info | Commercial Carrier Journal

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commercial carrier journal | november 2015 25 Marketpulse T he following information is obtained from the September 2015 CCJ Market- Pulse Report, a survey of more than 200 senior executives at trucking companies who have agreed to participate monthly. The Sep- tember 2015 MarketPulse Report received 86 completed responses from carrier executives. If you would like to participate in the MarketPulse survey, please email Jeff Crissey at jcrissey@randallreilly.com. Respondents indicated eroding business conditions, with 29.4 percent saying September was worse than August and 18.8 percent saying business conditions will be worse in the next six months (up from 10.7 percent in August). Only 31.8 percent of respondents said business should be better over the same term, compared to 40.0 percent as reported last month. Respondents from smaller carriers were slightly more optimistic than respondents from larger carriers, with 38.5 percent saying business should improve compared to 28.8 percent. Business conditions softening 0% 60% 10% 20% 30% 40% 50% Much worse Better Much better More than 100 power units Up to 100 power units Overall Worse Same 1 2 3 4 5 6 7 8 9 1 0 5.55 in September b e S T M O n T h e v e R w O R S T M O n T h e v e R The Carrier Sentiment Index for September was 5.55 – down significantly from the 6.12 reported in August. The index assesses the month on a scale of 1 to 10, with 1 being the carrier's worst month and 10 being the best. The index level for carriers with more than 100 power units was 5.69 (6.29 in August), while the level for those with 100 or fewer power units was 5.42 (5.65 in August). SOuRCe: CCJ MARkeTPulSe RePORT Freight volume (25.0 percent) continues its sharp upward trend in recent months as the second-biggest concern, with 28.8 percent of respondents from carriers with more than 100 power units listing it as a top concern compared to 16.6 percent of respondents with 100 or fewer power units. Driver availability remains at the top of the list of carriers' top concerns at 57.1 percent, but fell significantly from last month (66.7 percent). Driver availability Regulation Freight volume 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% January February March April May June July August September Other Freight pricing Concerns over freight volumes increase 1 = wORST 10 = beST Carrier sentiment down in September Compared to August's survey, fewer respondents in September said they were looking to grow their fleets (29.4 percent vs. 36.0 percent in August). however, more respondents indicated they were buying equipment to replace aging equipment (49.4 percent) compared to August (42.6 percent). Respondents from carriers with more than 100 power units are more likely to grow fleet size. Truck sales steady Up to 100 More than 100 overall power Units power Units Increase the size of our fleet 29.4% 19.2% 33.9% Replace aging equipment but keep fleet size the same 49.4% 53.8% 47.5% Decrease the size of our fleet 3.5% 0.0% 5.1% Make no change in our fleet 17.6% 26.9% 13.6% The economy certainly seems to be softening, so cutting costs will be imperative to maintain profitability. – September 2015 CCJ MarketPulse respondent CCJ MarketPulse is brought to you by Shell Rotella.

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