“Enjoy the good times,” Bob Costello, American Trucking Associations vice president and chief economist, told Randall Trucking Fall Symposium attendees. But rather than focusing on growth, carriers also should “watch those costs” to take advantage of the strong business climate, he said.
The mood was nothing but upbeat at the first Randall Trucking Fall Symposium, held Nov. 8-10, 2004, in Phoenix. A burgeoning economy fueled by a strong manufacturing base has made freight plentiful. Tight capacity, brought on by carrier failures and the new hours-of-service rule’s impact on productivity, have put carrier attendees in the enviable position of having more business than they can handle. This environment has helped carriers form collaborative relationships with their customers to achieve common goals such as improved productivity. And, they’ve been able to negotiate better rates, fuel surcharges and accessorial charges.
The only somber notes were record high diesel fuel prices and a severe driver shortage.
Inability to get drivers is constraining growth for virtually all carriers. Cost containment will be key to carriers’ continued success.
More than 200 attendees gathered for this by-invitation-only event, modeled after the successful Symposiums that Randall Publishing has held in Tuscaloosa, Ala., for more than 15 years. In the following pages you’ll find highlights from presentations made by industry experts. In addition, presentation materials are available at www.ccjmagazine.com under “CCJ Special Info.”
Organized by Commercial Carrier Journal, the Randall Trucking Fall Symposium is sponsored by C.H. Robinson/T-Chek; Cummins Inc.; Freightliner Trucks; Goodyear Tire & Rubber; Parker Hannifin Corp., Racor Division; Pegasus TransTech; Qualcomm; Roadranger; Shell Lubricants and TravelCenters of America.
ATA economist predicts continued tight capacity, strong demand
“It’s a good time to be a survivor,” Bob Costello, American Trucking Associations vice president and chief economist, told attendees at the Randall Trucking Fall Symposium. Strong manufacturing production and increased consumer spending are driving robust freight volumes, yet truck capacity remains tight, Costello said.
Through September, truck tonnage is up 7 percent, Costello said. Freight increases are “across the board,” he said, with even small carriers – which ATA defines as less than $30 million in revenue – seeing an increase in demand for their services. “This year small carriers are booming,” he said. And demand is driving higher revenues. Costello predicts revenue per mile for long-haul truckload carriers will increase about 8 percent over last year.
