It seems that freight trucking rates are about to increase beyond what was originally predicted. Some time ago, many transportation leaders anticipated a truckload rate increase in the single digits. The Journal of Commerce recently reported that there could be a truckload rate increase of 12%-18% in the next year or so. This could really impact many supply chains across the United States.
To find out the reason beyond this possible rate increase, we need to look at the expenses for trucking companies. The biggest expense for trucking carriers is the labor costs. And lately, many truck drivers have been receiving higher salaries. In the past few months, and into the foreseeable future, trucking companies are offering big wage increases to truck drivers nationwide. The reason for the wage increase stems from the need to attract and hire new recruits as drivers. There is substantial demand for more drivers, and in order to attract drivers, wages must increase. Even independent drivers are seeing higher wages in recent months. In 2014, the hiring rate for truck drivers doubled. However, the trucking industry is about 35,000 drivers short and that number will keep getting higher. Keep in mind; the trucking companies are competing with other industries for unemployed workers. The hours of service rules are another reason why trucking rates are also increasing.
This new increase could impact many shippers. It might not be felt right away, but it will happen. Speak to a freight forwarder who has the right connections to get you a better trucking rate.