2015 at a Glance
Jeffry Beckham, President of Kingsgate Transportation Services
- New HOS rules signed into law as part of CRomnibus bill, will relax the restart rules through September 2015. This should give a small boost to productivity but other industry factors not seeing a large bump in capacity. FMCSA/Congress will study through September.
- Rail service (poor – 10% behind) has more respondents moving rail freight to O-T-R, increasing the strain on capacity. Port backlogs having big impact.
- Advance Notice of Rulemaking has been announced with plans to increase in carrier insurance requirements will likely lead to more rate pressure. Small carriers will be hit the hardest, which will hit capacity.
- Anti-dumping laws just passed putting higher tariffs on Chinese container imports will likely impact rail rates – less freight likely diverted to rail – adding pressure on truck capacity.
- Carriers are employing stricter enforcement of payment terms and shippers negotiating on moving terms up, will get preferential pricing and capacity
- Many industry analysts still predicting price increases of 4-7%
- Analysts predict LTL cost increases will be between 3-5%, with a continuing strong LTL environment
- Record sales in trucks and trailers – driver shortage counter balances – most are investments in new equipment, updated features to attract drivers.
Any severe interruption in flow – weather, emergency, etc. will see rates ticking up even higher – 8-10% range predicted.