Tuesday, February 22, 2011
Truckload Rates Seen Rising 5 to 10 Percent
Truckload Rates Seen Rising 5 to 10 Percent
Interesting article here from The Journal of Commerce. Coupled with rising fuel costs, and decreased supply from the economic downturn of 2008-2010, this could be an interesting summer for freight rates.
Monday, February 21, 2011
Tuesday, February 8, 2011
Diesel Continues to Rise
Diesel continued to rise this week with the EIA reported on-highway cost for diesel of $3.513 per gallon and more than $3.60 per gallon on the west coast. Industry experts are now calling for diesel to rise above $4.00 per gallon by Memorial Day weekend and staying north of $4.00 throughout the summer.
Just today in a radio interview, House Speaker, John Boehner (R-West Chester, OH) predicted fuel will be $5.00 per gallon by the summer of 2012 unless serious efforts were made to lessen our dependence on foreign oil. With the unrest in countries like Egypt, Tunisia, Jordan and more market volatility remains highly unpredictable and the market threatened by these rising costs.
Fuel surcharges aside, the concern for carriers isn't just the cost, but also the initial outlay of cash or credit to purchase fuel (cash buyers are discounted) before they are able to collect from their brokers or shippers. Carriers are now looking to calculate the "cost of money" into their pricing strategies. Consider that a long-haul run of over 2000 miles will require a cash outlay of $1400 or more. We will continue to work with our customers and our carriers to manage these costs that protect the profitability of all three parties while continuing to provide the best transport services possible.
Just today in a radio interview, House Speaker, John Boehner (R-West Chester, OH) predicted fuel will be $5.00 per gallon by the summer of 2012 unless serious efforts were made to lessen our dependence on foreign oil. With the unrest in countries like Egypt, Tunisia, Jordan and more market volatility remains highly unpredictable and the market threatened by these rising costs.
Fuel surcharges aside, the concern for carriers isn't just the cost, but also the initial outlay of cash or credit to purchase fuel (cash buyers are discounted) before they are able to collect from their brokers or shippers. Carriers are now looking to calculate the "cost of money" into their pricing strategies. Consider that a long-haul run of over 2000 miles will require a cash outlay of $1400 or more. We will continue to work with our customers and our carriers to manage these costs that protect the profitability of all three parties while continuing to provide the best transport services possible.
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