Did You Know? (June 01, 2009)

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From 2003 to 2006 trucking rates increased by a greater degree than at any time since deregulation. And although both TL and LTL rates have been taking a beating since then, the continuing drop in capacity could create the conditions for another strong rate environment soon as the North American economy regains its stride. But our research shows there appears to be a ceiling to how high trucking rates can go, even when excess capacity is not an issue. The vast majority – almost 50% – of shippers who have diverted freight from truck to rail in recent years said they did so because of increased pricing, whether that included the rate only or the combination of the rate and surcharge.With fuel pricing expected to also rise as the economic recovery takes hold, that also raises questions about whether motor carriers are able to pass on all of their fuel cost increases of if they have to be careful not to price themselves out of the market. Fifty-six percent of shippers consider rail to be a viable alternative to trucking, our annual survey of Canadian shippers indicates. Approximately one-third (32%) indicate that this would apply to 1% to 10% of their current trucking shipments.

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Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.


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