Some Flatbed Fleets See Gains, But Demand Remains Anemic

By Rip Watson, Senior Reporter

This story appears in the May 18 print edition of Transport Topics.

Some flatbed carriers said they are seeing scattered volume growth, although weak housing, construction and steel markets continue to dampen demand in the trucking sector that has been hit hardest by the recession.

Eight flatbed fleet managers interviewed by Transport Topics portrayed a second quarter that鈥檚 being modestly helped by seasonal spring activity after their markets endured a dreadful first quarter.



Their views were consistent with an American Trucking Associations report on May 12 that found March loads fell 25% from March 2008 and 1.4% from February to the lowest level in 10 years. ATA鈥檚 flatbed index was 83.5 as March ended, while dry van stood at 87.8 and refrigerated and tank trucks were above 112.

鈥淲e are starting to see small signs of improvement in building materials,鈥 Chris Cooper, chief operating officer of Boyd Bros. Transportation, Clayton, Ala., told TT. 鈥淚t is very minute, volume-wise. It鈥檚 just a small sign of inventory replenishment. There is not any significant growth out there, as far as building is concerned.鈥

鈥淐apacity is coming out of the trucking industry so fast that we are starting to gain market share from those who went out of business,鈥 Cooper said. 鈥淔reight is coming more into balance.鈥

鈥淏usiness feels pretty flat, no pun intended,鈥 said Gary Salisbury, chief executive officer of Fikes Truck Line, Hope, Ark. 鈥淲e see some pockets and glimpses of a recovery. It is not consistent. You may have a good day or a good week, and then the next period will be horrible.鈥

To illustrate his point, he cited two Arkansas customers, one of which added a shift, while another one nearby closed temporarily because it had nowhere to store products.

鈥淚鈥檓 cautiously optimistic that, by the end of the second quarter, we will see some definite rebound,鈥 Salisbury said.

Asked if business was improving, Ed Botchie, vice president of Cressler Trucking Inc., Shippensburg, Pa., said, 鈥淭he best way I can answer that is: 鈥榶es and no.鈥 鈥

鈥淢ost of our flatbed business was construction equipment and commercial roofing,鈥 Botchie said. 鈥淭hey are still way, way down. As you lose one customer, you look for others. We have seen some strength in other areas, like plastic pipe and vinyl siding. How long that is going to last, I am not sure.鈥

Gary Harlow, CEO of 爱豆传媒 Run Inc., Xenia, Ohio, had a similar view.

鈥淲e鈥檝e seen an uptick in the last six weeks, gradually,鈥 he said. 鈥淚 don鈥檛 have a good feeling for whether or not it will be sustained. It鈥檚 not great, but it is OK.鈥

鈥淭his is the time of the year that you should see something happening,鈥 Harlow said, tying the pickup to modest inventory replenishment in the home and garden sector. 鈥淧eople ought to be fixing up their gardens and patios.鈥

Others weren鈥檛 as optimistic.

鈥淚t is just very spotty right now,鈥 said Craig Stanley, vice president of sales for Tennessee Steel Haulers Inc. in Nashville. 鈥淥n the whole, we are not seeing a pickup. We haul structural steel, machinery and pipe that all are tied into the construction arena. The integrated steel markets in Chicago, Gary [Ind.] and Cleveland are down because car manufacturing is hurting.鈥

鈥淚n a word, business is terrible,鈥 said Jim Towery, president of Steelman Transportation Inc., Springfield, Mo. 鈥淢ay is better than April. I hope April was the nadir.鈥

Towery said his company was helped by import moves of steel through Houston鈥檚 port that was fabricated in China. An important factor in a recovery is a rebound of domestic production, he said, a view shared by other executives.

鈥淭here have not been any signs of recovery yet,鈥 said Michael Card, president of Combined Transport Inc., Central City, Ore. 鈥淢ay volumes look to be improving over April but still are well down from last May. I think we will see an increase this summer to levels that will be only 10% down from last year, instead of the 20% to 25% we have seen the first couple of months.鈥

鈥淢aybe we will see some improvement in building materials if the $8,000 tax credit for new homebuyers works,鈥 Card said.

鈥淏usiness is still in decline across the board,鈥 said John Parsons, vice president of Utley Inc., Steele, Mo. 鈥淏ased on conversations with the companies we do business with, the second quarter of 2010 is what everyone is planning [for resumed growth]. They鈥檙e writing off this year.鈥

Some are seeing a delay in typical flatbed freight patterns.

鈥淲e usually see the spike come right after winter,鈥 Stanley said. 鈥淚t results from people who can finally dig [on-highway projects]. That has shifted to June and July. We are seeing a lot of bid activity.鈥

鈥淲e鈥檙e seeing that [postponed shipments] also,鈥 Botchie said. 鈥淎 lot of it goes back to the do-it-yourself homeowners. That usually moves in March and April, but weather plays a big part in that. The weather didn鈥檛 break until recently.鈥