Truckload rates could jump 25 percent in three years, says freight payment exec
U.S shippers and third-party logistics providers could see truckload rates increase by as much as 25 percent over the next two to three years, according to one of the heads of the largest privately held freight payment company in the U.S.
“We’ve had for many years a sea of relative calm. Things are changing,” TranzAct Technologies executive Michael Reagan said in a conference call with Stifel transportation analyst John Larkin Friday.
His remarks echoed the conclusions of a recent State of Logistics report out of the Council of Supply Chain Management Professionals among others, which have found tightening capacity fueled by growing demand means the end to historically low logistics costs.
According to Reagan’s data, capacity at public fleets, including owner operators, in the fourth quarter of 2014 was 9 percent below peak levels seen in the fourth quarter of 2006. Recruiting, seating and retaining drivers has been and continues to be the top operational challenge for carriers, Reagan said.
Carriers have also made a number of changes that haven’t helped capacity, Reagan added.
The age of Class 8 trucks has increased considerably over its historic norm. The average age for class 8 trucks in 2014 was 5.9 years old, less than a year older than the average age in 2010 when average age hit its peak.
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