Car sales good news for carriers

With stronger-than-expected automobiles sales reported in June, truckload carriers that do business with that industry could soon be reaping the benefits. Jerry Leonard, an analyst with Martin Labbe Associates, said the rise in auto sales will not only benefit auto haulers, but spread out to carriers that handle the raw materials that manufacturers need. “Everyone in the chain all the way down the

With stronger-than-expected automobiles sales reported in June, truckload carriers that do business with that industry could soon be reaping the benefits. Jerry Leonard, an analyst with Martin Labbe Associates, said the rise in auto sales will not only benefit auto haulers, but spread out to carriers that handle the raw materials that manufacturers need.

“Everyone in the chain all the way down the line will be the beneficiaries,” Leonard told Fleet Owner. “The carriers that deliver materials such as steel, plastics and rubber should all be affected.”

Leonard noted that the effects of the recent economic downturn resulted in a more plentiful supply of truck drivers. This means more drivers have been freed up to haul both the material and the finished product. And carriers are most likely doing better with wages, Leonard added, since the demand for drivers dropped.

However, since the economy has taken business away from both LTL and TL carriers, Leonard said traditional automobile carriers are probably getting stiff competition from carriers that had previously been hauling other products.

“There may be less people jumping in though because automobiles are very specific items,” Leonard said. “You can’t use a dry van to haul autos, but if you have a tractor, that is a different story.”

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