September 8, 2009

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.

About the Author

Mark B. Solomon
Executive Editor - News
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

More articles by Mark B. Solomon

Resources Mentioned In This Article

Transportation Videos

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.

Subscribe to DC Velocity

Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Survey: brokers say equipment shortages a possibility">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.