On the Road to Riches - Trucking Businesses for Sale

On the Road to Riches – Trucking Businesses for Sale

July 14th, 2011

Jonathan Dionisio

Recent economic data and industry reports have given some a dull view on what lies ahead. Still, companies remain cautiously optimistic that this storm shall pass and business will bounce back. One of those tenacious industries is the trucking sector.

The American Trucking Associations’ May 2011 advance seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased by 2.3 percent, placing the SA index at 112.3 from April level of 114.9. However, the not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 115.9 in May, which was 2% above the previous month.

“Truck tonnage over the last four months shows that the economy definitely hit a soft patch this spring,” ATA Chief Economist Bob Costello said. “With our index falling in three of the last four months totaling 3.7%, it is clear why there is some renewed anxiety over the economic recovery.”

However, Costello added that he is cautiously optimistic that freight volumes will improve in the second half of the year along with economic activity as oil prices fall and some of the Japan-related auto supply begins to bounce back.

Currently, Corporations4Sale.com has several listings of transportation businesses for sale:

Peter Nesvold, analyst at Jefferies & Co. said that despite weaker than expected growth, industry experts continue to forecast tonnage growth of +3% to +5% in 2011. This is because truckload (TL) pricing remains firm. Rates are also looking good according to the Second Quarter Business Expectations survey conducted by Transport Capital Partners, LLC. Survey revealed the highest share of carriers—83% — reported average rate increases compared to the first quarter’s survey, in which half reported average rates rising over the prior three months.

Economic recovery is indeed experiencing a bumpy ride – but it’s moving. And we do not expect any hurdles along the way. As we continue on down the road, recovery will move at a faster pace and before we know it, naysayers will be retracting their statements as we go full speed towards a stable and profitable future.

Sources:
http://www.truckline.com/pages/article.aspx?id=903/{8E1C7279-ED27-4C03-B189-CEEEE26BBB12}
http://fleetowner.com/management/news/second-half-positive-trucking-0628/

https://javatar.bluematrix.com/docs/pdf/c28c6195-713f-4128-b10b-ba679d562f0e.pdf