CARRIER COSTS AND DEMANDS AFFECTING TRANSPORTATION SERVICE PRICES

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

Trucking Equipment

Higher interest rates are increasing capital-equipment costs for trucking companies. The latest data show that prices for large truck trailers and chassis (10,000 pounds per axle and over) rose 2.3% and prices for trailers under 10,000 pounds per axle inched up 1.3% from year-ago levels. Buyers of trucks that haul bulk commodity and dry materials, moreover, saw average prices jump 7.5%. On the other hand, prices for tanks that hold flammable liquids actually fell 0.5%.

Other Capital Equipment

Prices for key commodities like steel and aluminum have been on the rise for more than a year, yet manufacturers have been reluctant to pass along higher costs to buyers. How much longer transportation equipment producers will hold the line on price hikes is not clear. In the meantime, average prices for civilian aircraft engines rose a sedate 2.4% between May 1999 and May 2000, while prices for new freight trains increased only 1.4%.