Canadian Carriers Pessimistic About Trucking Market in Early 2017
Fewer motor carriers in Canada are feeling confident about the trucking market over the next three months, according a survey released by the Ontario Trucking Association on Dec. 16.
The fourth quarter 2016 business conditions survey found that 49% of the carriers polled felt good about their prospects over the next three months, down sequentially from 55% in the previous poll in the second quarter. About 30% reported feeling unsure about the next three months, but 20% expressed pessimism, double the rate from the same survey two years ago, the association reported.
"As carriers look ahead, it appears the traditional post-holiday shipping doldrums of Jan-Feb might extend even farther out," the survey found. "Asked about their six-month outlook on intra-Ontario freight, an overwhelmingly majority (81%) predict no change, indicating a significant expectation of sustained stagnancy even into the spring ‘mini-peak’ season."
There was also pessimism related to cross-border freight between Canada and the United States. The association reported that 70% of carriers polled predicted a freeze in cross-border activity, only 27% expressed optimism and about 33% expected freight transported from the United States to Canada would decrease over the next six months.
Carriers also believe rates for freight moving from Canada to the United States will decline, with 9% suggesting an increase and 44% expecting a decrease. As far as backhaul trips from the United States to Canada, 33% expect price drops, but 39% expect prices to rise.
On capacity, the association reported that 53% of carriers had no shift in capacity in the previous quarter and 66% don’t foresee it changing in the next six months.
The top three concerns among carriers were driver shortage, the economy, and rates and capacity.
