Shipping Rates Expected to Rise
Shipping rates for trucking companies are expected to jump by 5% during 2011.
The three main causes of this projected increase are: the continued recovery of the US economy, changes in trucking related rules, and extreme jump in gas prices.
The recovery of the US economy means more goods are being shipped, resulting in increased demand for trucking services. This increased demand will place upward pressure on shipping prices for goods throughout the country.
New trucking related legislation, including the new CSA 2010 rules, have tightened capacity for trucking companies around the nation. Shippers are now checking the safety scores of trucking companies more frequently and selecting trucking companies with a good track record. Driver hours could also possibly be shortened this year, leading to further decreased capacity and higher shipping costs.
Diesel fuel accounts for a large portion of the operating cost from trucking companies. Any significant change in fuel cost requires the trucking companies to raise their prices to cover the costs. Diesel prices alone have jumped over 20% since September 2010.
This potential increase in shipping costs will ultimately results in higher prices for many goods that are purchased, potentially leading to higher inflation nationwide.