NEWARK, N.J., June 21 /PRNewswire/ -- After dramatic rate cutting and fleet downsizing over the last three years, trucking is regaining its footing, leading to sharp price increases this year for some shippers, according to the June 21 edition of The Journal of Commerce. Truckload is leading the industry with an overall rise in rates of 8 to 9 percent over 2009. Shippers are scrambling to lock in capacity and favorable pricing but the growth's longevity is the unknown factor.
Trucking's recovery has lagged that of ocean, rail and air but it appears to be catching up. Demand has risen 24 percent from last year and 14.4 percent in May alone. For contract shippers, truckload rates are up 3 to 5 percent, 10 percent and higher for third-party freight brokers and several times that on the spot market.
"We have an explosive situation that's just starting to ignite," said Data2Logistics' Executive Vice President Harold B. Friedman. He said he expects overall rates will reach 10 to 12 percent in the next few months.
This week's Cover Story analyzes this critical turning point for an industry that has struggled as long, or longer, than any other transportation mode during the recession.
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SOURCE The Journal of Commerce