Subscribe to our free, weekly email newsletter!


Price Trends: Trucking

By Elizabeth Baatz, Thinking Cap Solutions
April 01, 2010

The cyclical low point in inflation (or, in current environment, deflation) appears to have finally passed. U.S. Labor Department surveys report LTL transaction prices jumped 3.7% from January to February 2010. Of course, that one month didn’t wipe out five consecutive months of LTL price cuts, but any glimmer that recession-induced price concessions may be ending should concern shippers. From the July 2008 peak to the March 2009 trough, average trucking prices fell 8.6% while industry costs dropped 14.7%. Since hitting bottom, prices have inched up 1.5% as fuel-driven inflation has pushed aggregate industry costs up 8%. Our new trucking price forecast:  1.5% annual gain in 2010 and 2% in 2011.

% Change vs. 1 month ago 6 mos. ago 1 yr. ago
General freight - local 0.6 0.8 2.6
Truckload -0.7 -0.5 -1.0
Less-than-truckload 3.7 -1.4 -2.5
Tanker & other specialized freight -0.6 1.0 1.4

Source: Elizabeth Baatz, Thinking Cap Solutions. E-mail: .(JavaScript must be enabled to view this email address)

About the Author

Elizabeth Baatz
Thinking Cap Solutions

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

Shippers and other ocean cargo carrier stakeholders should be cheering the announcement made today by The U.S. Coast Guard, as it formally notified the International Maritime Organization through a Declaration of Equivalency that the United States position on SOLAS is that there are multiple methods to submit the combined cargo and container weight (Verified Gross Mass or VGM).

The proposed $4.8 billion acquisition of TNT Express N.V. by FedEx took a major step closer to becoming official today, with the company and TNT announcing today that they have received unconditional approval of the offer from the Ministry of Commerce People’s Republic of China (MOCFCOM).

March shipments at 798,180 trailed February by 12 percent and were down 19 percent annually. For the entire first quarter, shipments were relatively flat annually, rising 0.27 percent to 2,587,988.

OCEMA says it has placed a priority on working with other stakeholders to find operational solutions that will help U.S. exporters, carriers, and marine terminals prepare for the implementation of the SOLAS Verified Gross Mass (VGM) rule.

The first quarter is typically the slowest period of freight demand for LTL carriers. With a few notable exceptions, that was reflected in first quarter earnings reports of the major publicly held LTL carriers.

Article Topics

· All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA