BLOOMINGTON, IN — Freight transportation forecasting firm FTR said modest recovery growth and slow contract rate increases in the U.S. now come with a side of increased labor and recruiting overhead costs.

“Capacity is tight but has moderated from the critical level that we operated in during and just after the winter months. Freight rates seem to be a tale of two cities with contract rates very stable and only showing modest growth, yet spot rate activity has been quite strong since winter hit and has not let off since then,” said Jonathan Starks, FTR’s director of transportation analysis.