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Shipping News Rate Increases for Freight Shipments are Announced for 2005
May 13, 2005
Freight carriers in the shipping industry, those typically referred to as less-than-truckload (LTL) service providers, have announced their general rate increases for 2005. This annual event for the LTL industry usually happens in either June or July, but this year it happened earlier with some rate increases going into effect as early as April. The following is a sample of rate increases by some of the major freight carriers:
Many of the carriers cited rising costs that are outside of their control as contributing factors to their rate increase. For example, new government regulations on security will increase carriers' operating costs as well as new regulations for lower engine emissions. An increase in tolls on new and existing highways also contributed to the rate increase. Fuel surcharges, which are based on an industry index and are not part of the rate increase, will either increase or decrease with the price of fuel. Looking to the future, carriers would like to invest in equipment, facilities, and technology in order to improve service and freight handling. They're also investing in their employees by promoting professional development, which will lead to safer roads and fewer claims. All carriers indicate that investment in their infrastructure is critical to provide excellent service to their customers. One of the major issues facing the freight industry today is the shortage of drivers. As the population ages, freight companies are losing many drivers due to retirement and are therefore being competitive in their hiring of new drivers by offering attractive wage and benefit packages. Within the next 5-10 years the potential exists for the driver shortage to become critical to the survival of many freight carriers, unless they are able to recruit and retain qualified people. For more information about how these rates might impact your business, please call PartnerShip today at (800) 599-2902. |
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