LTL Pricing Predictions for 2017
With LTL (less than truckload) carrier prices top-of-mind for shipping managers, learning about carrier rate trends in advance is helpful for budgeting and planning your logistics. A recent report in Logistics Management magazine suggests shippers should expect modest increases in 2017.
“Most analysts and carrier executives are predicting revenue per hundredweight yields to be slightly more than two percent this year, with overall rate increases perhaps three percent to four percent. Of course, fuel price surcharges could affect those rate increases as well; so, shippers should expect their contract pricing increases to be up modestly, with fuel surcharges rising modestly—absent any shock to global oil supplies,” according to the industry publication.
Better times are ahead for the LTL industry overall. Lower taxes, reduced regulation and increased capital regulation are reported by industry analysts to be on the horizon. The new White House administration with its focus on supporting domestic jobs, infrastructure and manufacturing is also sure to impact demand. As a result, money invested in infrastructure projects will increase demand for freight and fuel truck driver employment.
“According to one analyst, LTL freight demand levels, which were flat in the fourth quarter of 2016, should grow again over the course of 2017. Estimates are for two percent tonnage growth,” reports Logistics Management. Demand is steady, “but carriers are under cost pressure from suppliers on everything from new trucks to insurance to health care costs.”
“The biggest wildcard for the economy,” reports Logistics Management, “is how the new administration in Washington D.C., will handle the threats to world trade.”
Read the complete article, “Less than Truckload Upbeat Outlook for 2017” in Logistics Management.