Last Tuesday at the National Industrial Transportation League’s Freight Policy Forum in Washington, D.C., trucking executives from around the nation gave a stern warning about rising operation costs and how it can impact shipper’s budgets.
Carrier executives warned that shippers could face much higher transportation costs in 2012 as higher demand meets tightened capacity, coupled with rising driver wages, insurance premiums, and equipment pricing. One executive expects a 4 to 4.5 percent increase in total costs in 2012, which would trickle down to the carrier rates paid by the shippers. The topic concluded that motor carriers and shippers will only be able to manage these heightened costs and avoid potentially damaging rate spikes if they form close partnerships. Stay tuned as more unfolds.