{"id":2005,"date":"2016-09-16T18:18:59","date_gmt":"2016-09-16T18:18:59","guid":{"rendered":"https:\/\/cantruck.ca\/analyst-rates-wont-rebound-until-mid-17\/"},"modified":"2025-01-10T16:50:05","modified_gmt":"2025-01-10T16:50:05","slug":"analyst-rates-wont-rebound-until-mid-17","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/analyst-rates-wont-rebound-until-mid-17\/","title":{"rendered":"Analyst: Rates Won\u2019t Rebound Until Mid \u201817"},"content":{"rendered":"

Pricing pressure in the truckload and intermodal sectors was the theme for 2016 and carriers are not expected to see any relief \u00a0until 2017, according to Stifel Capital Markets<\/a><\/p>\n

As reported by Fleet Owner, John Larkin, managing director and head of transportation capital markets research<\/a> for Stifel, warned that trucking companies expecting to see a big bump in holiday season rates may be disappointed.<\/p>\n

\u201cWe\u2019ve seen a very difficult rate environment for the TL sector, particularly on the spot market side,\u201d he noted in a conference call with U.S. trade reporters.<\/p>\n

\u201cPricing pressure in TL and in intermodal is the big story for the first half of 2016 and there is no relief in sight for rest of this year,\u201d he said.<\/p>\n

While he expects e-commerce demand<\/a> to grow between now and December, he said that truckload pricing won\u2019t improve much until the second quarter of 2017 \u201c and it\u2019s not clear they\u2019ll improve by then either.\u201d<\/p>\n

David Ross, another of Stifel\u2019s freight transportation analysts, added that LTL carriers should benefit from any capacity tightening in the TL sector.<\/p>\n

\u201cIf capacity tightens in TL next year, expect to see a boost to LTL in expanding volumes and margins,\u201d he said. \u201cHowever, right now, we\u2019re seeing nothing but a slow growth environment as we look around the world these days.\u201d<\/p>\n

That\u2019s because, from Stifel\u2019s perspective, the U.S. economy continues to suffer from \u201csluggish\u201d economic growth freight demand \u201cstill pretty weak\u201d overall.<\/p>\n

Other observations regarding the freight markets from Stifel\u2019s analysts include:<\/p>\n