BLOOMINGTON, Ind. – Shippers in the US should prepare to pay more for trucking services, according to the latest Shippers Conditions Index from FTR.
The industry forecaster says capacity is tightening, but adds that regulatory drag could slow under the new administration. But solid economic growth in the 2.5% range for 2017 will drive up costs for shippers, FTR reports.
“The economy is beginning to show signs of some acceleration. Manufacturing is attempting to shrug off its inventory woes, and business confidence has certainly improved, although it hasn’t translated into direct investment yet,” said FTR chief operating officer, Jonathan Starks. “If sustained, this would raise the outlook for freight demand this year and into next year. While that would cause capacity to tighten, the tailwind is that the regulatory environment isn’t expected to have as dramatic an impact as initially thought. Costs, especially rates, are still expected to see increases this year after a relatively weak rate environment in 2016.”