Freight rates and truck prices continued their recent rise in September, according to the Producer Price Index released Friday by the Bureau of Labor Statistics.
However, the total index rose only 0.1% from August, even though energy prices increased 0.9%. The index has declined .1% in the last three months and 1.9% since last September. This is a tough economic environment to request a price increase. But tame inflation does permit the Federal Reserve Board to delay the inevitable increase in interest rates with an expanding economy.
HDT's LTL rate index rose 1.4% in September following a similar gain in August. Fuel price adjustment clauses account for a small share of the recent gain, but most of it appears to be due to a tightening freight market. LTL rates have increased 7.6% since their low point in the 2001 recession.
The weaker TL market recorded a small 0.2% rate gain, matching the August increase. TL rates have now recovered a little more than a third of 2% fall from last September through March.
Medium and heavy truck prices increased 0.1% but are up 0.9% in the last three months after two years of steady to slightly lower prices. This also may be demand-driven since the impact of the new, more expensive, engines will not be in the index until the October report.
However, the total index rose only 0.1% from August, even though energy prices increased 0.9%. The index has declined .1% in the last three months and 1.9% since last September. This is a tough economic environment to request a price increase. But tame inflation does permit the Federal Reserve Board to delay the inevitable increase in interest rates with an expanding economy.
HDT's LTL rate index rose 1.4% in September following a similar gain in August. Fuel price adjustment clauses account for a small share of the recent gain, but most of it appears to be due to a tightening freight market. LTL rates have increased 7.6% since their low point in the 2001 recession.
The weaker TL market recorded a small 0.2% rate gain, matching the August increase. TL rates have now recovered a little more than a third of 2% fall from last September through March.
Medium and heavy truck prices increased 0.1% but are up 0.9% in the last three months after two years of steady to slightly lower prices. This also may be demand-driven since the impact of the new, more expensive, engines will not be in the index until the October report.
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