CARRIER COSTS AND DEMANDS AFFECTING TRANSPORTATION SERVICE PRICES

By Staff -- Logistics Management, 11/1/2000

Wages

With the national unemployment rate at a record low 3.9%, carriers and service providers are having problems filling job openings. Yet surprisingly, wages are not skyrocketing. For example, the trucking industry paid an hourly wage of $14.51 in August 2000, up only 2.8% from year-earlier levels. Railroads paid $18.08, up 3.1% over the same period. Warehouse workers, meanwhile, made $12.34-a 5.3% wage increase from year-ago levels.

Conveyors

Conveyor manufacturers are facing a sharp increase in their costs, which could lead to price hikes in the months ahead. What's happened? In the 12 months ending with September 2000, average direct manufacturing costs in the conveying equipment industry rose 1.6%, compared with a 0.6% decline in the previous 12-month period. Increases in carbon steel costs are to blame, but steady rises in labor costs have also done some damage.