Partly as a result of the improved statistics but more due to fleet downsizing, transportation analyst Lee Klaskow of Longbow Research in Independence, OH upgraded the trucking sector from "underweight" to "neutral." He based his rating on a July survey showing that 44% of North American truckload carriers expect a positive business outlook for the rest of the year, compared to only 15% with similar expectations in June.

Klaskow, who does not see the economy reaccelerating till '09 at best, says carriers will continue to disappear, creating a better pricing environment for truckers at the expense of their customers. He believes shippers will increasingly aligning themselves with large trucking companies to ensure capacity.

In addition to the above, the most recent report from the Intermodal Association of North America (IANA) of Calverton, MD reveals that total domestic volume for Q2 showed highest quarterly growth rate since Q2 '04. The 1% boost in intermodal trailer volume was the first rise in over three years.

However, in contrast to the trucking organizations, the IANA predicts further weakness in both the intermodal and trucking industries, as concerns about bank failures, inflation and job losses continue to hobble the US economy and drive down retail sales.

According to the report, truckers face even greater challenges than intermodal carriers due to the "outsized impact of fuel on trucking costs." Additionally, the IANA points out that truckers face other increases in cost, such as the new surcharge of $15 per 20-foot-equivalent container to be levied on truck transport at the ports of Los Angeles and Long Beach beginning in October.