William B. Cassidy | Jul 28, 2011 4:08PM EDT
More than half of the truckload carriers polled in a recent survey said they would be interested in buying or selling their business, Transport Capital Partners said.
About 48 percent of the trucking businesses said they want to buy another carrier, and almost a quarter of the company executives surveyed said they might sell. The survey also found only 53 percent of the carriers believed they are getting an adequate return on their investment in equipment, despite recent price hikes.
The second-quarter survey follows a spate of trucking and logistics acquisitions aimed at increasing revenue and capacity as truckload rates rise.
The gap between larger and smaller truckload carriers is growing, as higher costs pressure smaller operators, the Transport Capital Partners survey shows.
The consulting firm found 58 percent of truckload carriers with more than $25 million in annual revenue were looking to add capacity through acquisitions.
“The carriers are looking for partners to ‘tango’ with as volume and rate expectations are very positive,” said Richard Mikes, a TCP partner.
However, only 28 percent of carriers with less than $25 million in annual sales were interested in buying another carrier within the next 18 months, said TCP.
Smaller carriers were more interested in being acquired, with almost 40 percent of their owners saying they would be willing to sell their company within 18 months. In contrast, only 17.5 percent of the larger carriers were interested in selling.
Smaller carriers are feeling more squeezed by an inadequate return on investment and having more difficulty finding credit for purchases and expenses, TCP said.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc