Market Watch

By Staff -- Logistics Management, 7/1/2000

Trucking

Fuel surcharges are now showing up in the Bureau of Labor Statistics' truck rate surveys. In May, truckload rates for general freight rose 0.9% over April levels. Rates for the intercity trucking of agricultural products rose 0.7% over the same period. Less-than-truckload rates, meanwhile, dropped 0.1% but remained 5.7% higher than they were 12 months earlier. To track TL and LTL prices yourself, log onto the BLS Web site (www.bls.gov). Click on Data and then click Series Report. To get TL data, type in PCU4213#312; to get LTL data, type in PCU4213#311.

Trucking

% CHANGE VS.:	1 month ago	6 mos. ago	1 yr. ago

Less-than-truckload	-0.1	+3.1	+5.7
Truckload	+0.9	+2.5	+2.6
Agricultural--not local	+0.7	+3.0	+3.5
General freight--local	+0.5	+1.8	+0.8
Agricultural--local	0.0	+1.7	+1.7

Water

U.S.-owned companies that operate freight vessels between foreign ports and the United States continued to raise rates in May. According to the Bureau of Labor Statistics' price surveys, average prices for inbound liner service rose 2.9% between April and May and 14.8% between May 1999 and May 2000. Deep-sea outbound liner service, meanwhile, saw rates hold steady in May. Higher labor and fuel costs are contributing to recent rate hikes. For example, prices for vessel docking and undocking tow services rose 4.8% between April and May.

Water

% CHANGE VS.:	1 month ago	6 mos. ago	1 yr. ago

Inbound liner	+2.9	+5.9	+14.8
Outbound liner	0.0	+1.0	-7.0
Domestic deep sea	+0.2	+4.1	+4.7
Grt. Lks.-St Lawrence	0.0	+0.1	+0.1
Mississippi River	-2.5	-4.9	+9.7

Rail

Hot demand for rail service is driving rates ever higher. In May, average prices for hauling primary metals jumped 3.2% from April levels and 7.2% from May 1999 levels. The price charged to haul pulp and paper also surged, up 3.1% from April levels and up 3.7% from year-ago numbers. Rates for hauling stone, clay, and glass, meanwhile, held steady between April and May, but remain up 4.6% from year-ago levels. Although railroads attribute the recent rate hikes to equipment shortages and fuel costs, strong demand for rail service surely plays a role too.

Rail

% CHANGE VS.:	1 month ago	6 mos. ago	1 yr. ago

Coal/Petroleum	+0.4	+0.9	+0.9
Chemicals	-0.2	+0.5	+0.9
Farm products	+0.2	-0.9	+0.5
Motor vehicles	-0.4	-0.1	-0.4
Metallic ores	0.0	+4.8	+1.9

Air

Of all the transportation modes we study, scheduled airlines appear to be the least volatile where freight pricing is concerned right now. In May, average prices for shipping cargo by air rose only 0.1%. Compared with May 1999, prices were up only 1.4%. But when it comes to the air-courier business, the story is quite different. Prices for domestic air- courier service were up 14.3% from May 1999 to May 2000. Average prices for international air-courier service rose 4.7% over the same time period. We expect air transportation costs to continue rising throughout most of 2000.

Air