Rules of supply and demand
will boost trucking costs as summer approaches, KiplingerForecasts.com reports.
For this reason, businesses
that ship via truck should now lock in freight rates.
“Prices will climb by
an average 4 percent this year – about twice the hike in 2002 – but rate
increases will be only about 2 percent to 3 percent on contracts signed
in the first half and closer to 6 percent after mid-year,” Kiplinger reported.
later this year, an improving economy will prompt rising demand in truck
shipping, which will encounter a “capacity crunch.”
Further, analysts say
trucking company failures since 1999 have reduced the number of rigs on
the road, while companies still in business have not bought new trucks,
partly because of concern about the reliability of new low-emission diesel
Meanwhile, freight rates
on LTL contracts should follow the same pricing pattern as full-load contracts, Kiplinger reports.
The exception would be in the Southeast and Midwest, where LTL carriers
are seeking 5 percent to 10 percent rate increases in anticipation of rebounding
business demand in those regions.