(Mark B. Solomon – DC Velocity)
The U.S. freight industry, coming off its best year since 2007, is poised to perform even better in 2015, a trend that bodes well for carriers but not for users facing higher rates and scarcer capacity especially in trucking services, according to the author of a monthly index that tracks shipment and spending activity.
Rosalyn Wilson, who writes the analysis for the index, which is published by payment and auditing firm Cass Information Systems, said in a report issued today that volumes and carrier revenues "will grow steadily" this year, leading to fatter margins for carriers whose profits have been squeezed in recent years by historically subpar demand and by escalating costs. Shippers, however, should brace themselves for continued rate increases as freight demand exceeds supply, particularly in trucking, Wilson said. Truck users will pay more for guaranteed capacity, and truck space may not be available at any price during the year's peak shipping periods, she predicted. Click here to read more.