Motor carrier executives remain optimistic that 2016 will bring solid growth for their companies, according to a new study by TCP. This optimism overrides economic events in the 4th quarter of 2015 that saw growth expectations at their lowest levels in over 5 years.
"Expectations are lower than in recent years but are still positive for 2016,” said Steven Dutro, TCP partner. “The indication is for a stable business environment and little fear of a recession."
At the beginning of 2015, 79% of the participants in the survey were looking forward to rate increases over the year ahead. Turning the page into 2016, that number had dwindled to 41% - the lowest percentage we have recorded since 2009.
Executives see a profitable 2016 as 41% expect their freight revenue rates to rise this year.
“We are seeing more variation in the opinions of individual carriers than in prior years,” notes Richard Mikes, TCP partner. “Any further tightening, caused by a small increase in demand or driver shortages, will have a proportionally greater upward impact on spot and contract rates.”