BLOOMINGTON, Ind. — Shippers should expect to pay more for freight transportation services through the remainder of the year, according to the latest FTR Shippers Conditions Index.
FTR reported its SCI for May remained basically unchanged, with a reading of -7.5, which indicates continuing tight capacity.
Truck utilization rates are holding between 98-99%, FTR reports.
Increased labour costs will drive shippers’ costs upwards through the remainder of the year, FTR predicted. Spot rates for truckload freight have increased and FTR expects to see increases in contract prices as well.
“Although shippers are not struggling to find capacity as they were during the storms earlier in the year, capacity remains tight for both truck and rail,” said Eric Starks, FTR president. “The driver shortage continues to limit trucking, while service levels on the rails have been an issue. Shippers are increasingly pressured to maximize capacity by collaborating with carriers to increase productivity.”
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