Better capacity balance and rates not likely to come in 2014: Analyst

28/05/2014

CARRIERS expecting 2014 to be the year when capacity and rates improve are likely to be disappointed, says North Carolina's BB&T Capital Markets analyst Thom Albrecht.

"The creeping regulatory burden and the deteriorating driver situation all point to gradual capacity tightening in 2015 and 2016, but this year will have some occasional fits and starts," he wrote in an investor note.

Although carriers are reporting volume increases compared to last year, 2014 will be a transitional year and will not be the boom predicted after seeing February and March results, he said.

This year will mirror 2003, during which carriers saw capacity tighten and rates rise, but not 2004, which he described as "carrier Nirvana" reported American Shipper.

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