Transportation pricing trends - July 2011


By ·





 

Trucking
Up 0.9% from a month ago, average prices for all trucking services increased for the 10th consecutive month in May 2011. Year-over-year, aggregate trucking tags climbed at a 3.6% pace as TL and LTL prices each increased 4.5%. With increasing demand and still-high fuel costs exerting inflationary pressures, our 2011 trucking price forecast has been revised upward to 6.4%. That inflation rate rivals the previous largest annual rate increase: 2008's 6.6% price hike. Back then, most transportation modes saw their prices plummet after that extraordinary '08 inflation boom. Indeed, in 2009, trucking prices plunged 4.6%. This time, our forecast model shows trucking prices falling only 0.5% in 2012.






 

Air
Airliner price data from companies headquartered in the United States reveal a mixed bag of inflationary trends. Air carriers moving mail and freight on scheduled flights managed to increase prices in May, up 0.8% from a month ago and up 11.6% from same-month-year-ago. Expedited courier services also continued their pattern of aggressive price hikes, up 1.7% and 14.9% over the same time periods. Meanwhile, prices for flying freight on chartered U.S.-owned flights plunged 9.4% from a month ago, but remained 3.7% higher than same-month-year-ago. Focusing on airfreight via scheduled flights, our 2011 inflation outlook has been raised from 8% to 9.3%. This will be followed by a 3.8% price decline in 2012.






 

Water
Flooded with a barrage of price hikes, a raging Mississippi river hasn't been the only thing on shippers' minds. Prices charged by barges and other inland waterway vessels increased 0.4% from a month ago and 10.5% from same-month-year-ago. Year-over-year, inland waterway freight prices increased 8.5%. Even worse, according to the Labor Department's survey of U.S. companies, deep sea waterborne freight service prices increased at a year-over-year 15.1% pace in May. Adding it all up, our forecast for the U.S. water transportation services price index has been raised from 5.1% to 6.1% in 2011 and lowered from 4.4% to 2.9% in 2012.






 

Rail
Bulk carload freight and intermodal rail traffic have been on a fast track this past spring, according to reports from AAR. So, strong monthly price increases and an upward revision in our rail service industry price forecast should come as no surprise. Up 2.4% from a month ago, average prices for all rail transport services increased for the ninth consecutive month in May 2011. Year-over-year, aggregate rail tags soared higher at a 6.3% pace as intermodal and carload rail prices grew 7.4% and 6.2%, respectively. Our trend forecast for rail industry prices has been revised upward from 5.3% to 7.5% for 2011. Looking farther ahead, we predict a mild 1.8% retrenchment in rail prices, on average, in 2012.


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!

Article Topics

Freight · July 2011 · All Topics
Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....