As Rates Go Up, What Are Shippers Doing?

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March 2, 2011

Let's take a look at some headlines.

Diesel rises to $3.57 and crude oil tops $100 a barrel

Truck tonnage surges 8% and the January index is at its three-year high after the 14th straight gain

US Class 8 fleet decline ends as new sales rise

Tough luck times lead more fleets to retreads

Trailer registrations rise 42%

Driver pay hikes expected in second quarter as freight demand grows

Intermodal fleets say safety ratings hurt by CSA violations of discharge drivers

Parts makers scramble to meet rising demand

DaimlerChrysler North America will hire 1300 workers this year

Trucking executives say they expect rate increases

DeFazio wants truckers compensated for excessive waiting time at loading docks

Truck tire prices increase yet again

A quick straw poll of shippers we know and do business with reveals that most are expecting anywhere from a 3% to 8% rate increase this year. When we asked these shippers what they thought the impact of the hours-of-service rule changes would be, many said that they had not calculated the impact of the HOS in their budgets.

We care about what you think. Are you in a situation where you're going have to pay up for capacity? What's the attitude of the carrier salespeople?

Perhaps a little bit more important:  how many of those load tenders are being accepted by your lowest-rate carriers?

Ouch.

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