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Look for higher (potentially much higher) transportation rates over the next two years. Shippers could see their LTL and Truckload transportation costs increase by as much as 10% - 12% due to a combination of carrier rate increases, and fuel surcharge increases. The elements that are forcing shippers to operate under a different set of rules and will contribute to steeply rising freight costs in the future include: CSA, concern over potential changes in the rules governing Hours of Service (HOS); proposed new rules for EOBR's, the qualification for drivers, diesel emissions, the battle with CARB at the California Ports, the independent contractor issue, and the list goes on…
It is important to have a full understanding of what is happening in the market, and specifically, how the carriers are being affected by recent legislation. Does your transportation budget project a 10% - 12% increase in transportation costs? If not, please review the resources we have available in the sidebar.