Tune up the reefers/sweep off the decks fellows

[RostyC]

Looks like we're going to get rich real soon.
Link: DC Velocity

Survey: brokers say equipment shortages a possibility

Transport brokers say refrigerated equipment shortages could develop in the next 90 days.

By Mark B. Solomon



For many months, transportation executives and analysts have warned that ongoing reductions in transportation capacity would lead to equipment shortages and rising rates once demand picks up. If the results of a second-quarter survey of transportation intermediaries are any indication, that time may be approaching.

The study, conducted by the Transportation Intermediaries Association (TIA) among 42 member companies, asked respondents about the equipment availability outlook for the next three months. Forty-six percent of the respondents said shortages of refrigerated equipment were possible within the next 90 days, while 20 to 30 percent said shortages of flatbed, dry van, and/or container capacity were a possibility in that time period. The percentages were higher than expected, TIA said. The survey made no mention of whether respondents were experiencing or predicting price increases as a result of expected shortages.

C.H. Robinson Worldwide Inc., one of the most influential intermediaries, is unaware of any shortages at this time, according to company spokeswoman Tracie Stoltenburg. "We have heard people talking about the possibility of equipment shortages, though at the moment we haven't experienced any to speak of," she says.

The survey also found that total dollars billed by the participants during the second quarter rose by 7 percent over first-quarter figures. In addition, 60 percent of the participants who responded to a question about future expectations said their outlook was positive and that they expected to see more business from their core customers soon.

They'll pardon me please if I remain skeptical.
Does anyone know of TIA? If so, shed some light please. I haven't heard of them till now.

[chris1]

It's a company that wants brokers to join so it can collect the yearly membership fee and work for your benefit.

[no_worries]

They're a trade group...the brokers' equivalent of the ATA or OOIDA.

All they have to do is take a look at how much new and used inventory is for sale out there. Sounds like they're trying anything they can to try and justify higher rates to shippers. I think the CHR would know better than anybody whether or not there was an impending shortage of reefers. TIA, typical lobbyists.

[chris1]

Like other paid memberships,as long as you are paying they are happy.

[SickRick]

So I guess that's why the used equipment dealers are raising their prices?

I've been "kicking tires" the last couple of months, in anticipation of making a purchase after the new year. Seems like used gear prices are going UP.

Everyone trimmed down their fleets in order to survive this depression - now TIA is crying "shortage of capacity"? I'm sure everyone would like to see their 3K miles a week come back - even more important is the CPM for both company drivers and O/O's go back up. as of now, there are still companies that are doing PAY CUTS on their fleets and office staff. Doesn't smell like demand is going back UP yet...

Rick

[b00m]

Let them have it!!

$5 per mile rates coming soon from these ripoffs

I really don't see anything happen.At least not for now.Maybe next year when full produce season is in effect and Cali will have their compliance requirements for reefers going on. A lot of people that i know, talked to just don't have that kind of money to put into a reefer unit,or engine compliance.

As far as the other side of trucking,van,faltbed etc, unless manufacturing,construction and consumer confidence won't pick up,there will be no shortage of trucks,as we still have freight being moved at $1 per mile or less.

[GMAN]

It usually helps when produce season starts. It takes some of the reefers out of the van freight business. That tends to push rates upward. Some van freight can be hauled on flats. The problem is that so much of the trucking industry relies on construction and the auto industries. That is for most segments of the industry. Flats haul construction materials and steel which is used to manufacture a number of products from refrigerators to cars. The finished products such as hard goods (refrigerators, etc., ), and consumables are hauled in vans. Once confidence returns and consumers start buying then products will need to be moved to replace sold items. This isn't going to turn around over night. I thought is was funny (NOT) when Obama stated that the recession was over the other day. Government workers don't experience things like the rest of us. They don't usually have their hours or pay cut.

[no_worries]

So I guess that's why the used equipment dealers are raising their prices?

I've been "kicking tires" the last couple of months, in anticipation of making a purchase after the new year. Seems like used gear prices are going UP.
Rick

I've been trailer shopping for a year and am always on the lookout for interesting tractors. I've also got a few friends who've purchases used trucks recently. We're all still seeing depressed prices with no hint of rising. The dealers we deal with aren't terribly optimistic. Maybe you're in a hot region.

[SickRick]

I've been trailer shopping for a year and am always on the lookout for interesting tractors. I've also got a few friends who've purchases used trucks recently. We're all still seeing depressed prices with no hint of rising. The dealers we deal with aren't terribly optimistic. Maybe you're in a hot region.

Checking mainly truckpaper.com. Posted prices seem a lot higher than a "depressed industry" would call for. Then again, I'm looking for a very specifically equipped tractor (VN780, 04-06, Cummins 500+, 13 speed, 500-700K mi.) - which of course narrows the choices and raises the price range (where being more open-minded, opens more options).

The one's I've seen that meet my criteria are probably asking $6-10K higher than is realistic in todays market. Then again, cash is KING (and I'm buying all ca$h) and no one lets wads of c-notes walk out the door. Problem is, most units involve significant travel to check out, and that creates pressure to purchase, even with a "less than perfect" scenario. Who wants to drive 2,000 mi.'s and walk away from a deal?

Sorry for the thread hijack...

Rick

[no_worries]

Checking mainly truckpaper.com. Posted prices seem a lot higher than a "depressed industry" would call for. Then again, I'm looking for a very specifically equipped tractor (VN780, 04-06, Cummins 500+, 13 speed, 500-700K mi.) - which of course narrows the choices and raises the price range (where being more open-minded, opens more options).

The one's I've seen that meet my criteria are probably asking $6-10K higher than is realistic in todays market. Then again, cash is KING (and I'm buying all ca$h) and no one lets wads of c-notes walk out the door. Problem is, most units involve significant travel to check out, and that creates pressure to purchase, even with a "less than perfect" scenario. Who wants to drive 2,000 mi.'s and walk away from a deal?

Sorry for the thread hijack...

Rick

Expand your search to 475 hp and up and you'll find several under $40,000. The 475 can be turned up to 550, even under warranty. The components are all the same until you get up to the ISX that comes at a minimum of 530 from the factory. That one comes with a few up-sized components. Most notably the turbo.

That's one thing we've noticed. The prices we know things are selling for are often significantly less than what you normally see for asking prices. I'd be happy to trade or sell my equipment today...but not at these prices.

[merrick4]

Local Kenworth dealer says that used truck activity is moving now. I know where I buy them, they are done dropping prices. I am about 90% sure I will be getting another unit very shortly. I keep saying I am going to stop but I keep going I guess. I think 9 or 11 will be good to stop at.

Reefer equipment is hard to come by now. According to everyone I talk to, used reefers fly off the board the minute they hit.

I just leased two of them for $950 a month, $.03 a mile and $.70 per engine hour (engine not switch). I'd rather buy them but banks shut me off.

I am considering buying a clean 2000 reefer and installing a new unit.


Another point of interest btw, as I do the factoring thing too, am getting calls now from people with new authority wanting to factor. Not the smartest thing right out the box, but who am I to judge? I set them up, make sure they aren't getting ripped off and that's all I can do.

[Justruckin]

I talked to a friend of mine not long ago, he owns a trailer dealership with shop up here in the Detroit area. He sees no recovery any time soon, sales are terrible and he has a heck of a time getting people financed. Even guys with stellar credit are being turned down for loans, and my friend has roughly 8 different finance sources both locally and nationally. The only thing keeping his doors open is the repair side of the business, and he doesn't know how much longer that will last before he does have to close the doors.