Subscribe to our free, weekly email newsletter!


2010 Mid-year rate outlook: Paying a Premium

While the extent of the recovery remains uncertain, shippers will continue to be hit with rate increases across all modes.
image
By John Paul Quinn, Contributing Editor
July 15, 2010

In the earlier stages of the downward economic trend of the past two years, analysts were initially reluctant to use the dreaded “R-word.” But now it seems as if they’re equally wary about using another “R-word,” but this time it’s “recovery.”

“We seem to be enjoying a burst of growth, but the fundamentals aren’t there,” says David Jacoby, president of supply chain consulting firm Boston Strategies International.

“The job growth is largely in temp work and there has even been a slowing of this as we approached the middle of the year.”

Jacoby adds that corporate investment is also lagging as companies are conservatively hedging their bets since many don’t see this as a sustainable growth situation—at least not yet. “This is not necessarily a dangerous scenario, but it’s a disappointing one,” he says.

Forecasts of GDP growth are hesitant and cautionary as well, according to Paul Bingham, managing director of trade and transportation at IHS Global Insight.

According to Bingham, real growth is forecast to be up 3.4 percent this year in contrast to the negative 2.4 percent of 2009, but the pace is expected to slow back to 2.8 percent in 2011.

About the Author

John Paul Quinn
Contributing Editor

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The popularity of cloud computing has consumed headlines ranging from fear and doubt, to claims of being the ultimate answer to all software applications in the enterprise. You may be asking yourself, what's the real story? Download the white paper, WMS in the Cloud, today to find out if cloud computing is right for your business.

A well-designed driver wellness program could make the job more attractive and help alleviate driver turnover.

Download this new white paper to understand vital (and complex) customs requirements and competitive strategies for business shipping through the US/Canada border.

The trend of rising weekly diesel prices remains intact, with the Department of Energy’s Energy Information Administration (EIA) reporting this week that the average price per gallon of diesel gasoline increased 1 cent to $2.914 per gallon.

When the United States House of Representatives last week voted extend current law and authorizes surface transportation programs through the end of July by a steep margin, it was widely expected that the United States Senate and follow their lead. That is exactly what happened on Friday, May 22, with the measures headed to President Obama to be signed into law.

Article Topics

· All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA