Trucking rates expected to continue to increase

Trucking companies are expected to achieve their biggest rate gains in years during 2011, reports USA Today. Reasons for the expected gains include the economic recovery, rising fuel prices, stricter safety regulations and reduced delivery capacity.
R.W. Baird analyst Benjamin Hartford told the newspaper trucking rates will rise 5% this year, after increasing 2% last year. The price of diesel fuel has risen 20% since September.
Since the government started to publicize the safety ratings of trucking companies in December, some businesses have backed away from using carries that received warnings. Transplace CEO Tom Sanderson, whose company manages freight deliveries for business, told USA Today that the new government ratings will put some trucking firms out of business. He said the ratings will cause fleets to decline 5-10%. The trucking industry has incurred a 15% drop in capacity the past 4 years.
Trucking companies and drivers are also paying higher equipment costs. The newspaper reported that truck prices have risen 25% the past 5 years.
Proposed stricter new rules would limit the number of hours that drivers can be on the road. If enacted, trucking companies would need to purchase more trucks and hire more drivers.

Pictured: Trucking companies will make major rate gains this year.
Photo courtesy of American Trucking Associations