Eighty-three percent of carriers reported average rate increases in the recent Second Quarter Business Expectations Survey by Transport Capital Partners.
That compares to less than half that reported rising rates in the first quarter.
"The responses were also notable for the most reporting average rate increases over 15%, the most between 10 and 15% reflecting both breadth and magnitude in a quarter noted for high contract bid activity," said Richard Mikes, TCP partner and survey founder.
The majority of the carriers had at least a 5% increase. Carriers continue to report cost increases including drivers, tires, new regulations, fuel and general expenses. The 1/6 who reported no increases last month may be a reflection of no new contract pricing and a slow down in spot market freight rates for some types of freight and regions impacted by slowdowns.
A higher share of larger carriers (over $25 million in revenue) reported rate increase up to 5% compared to smaller carriers. However, 31% of smaller carriers reported average rate increases over 10% compared to 21% of larger carriers.
"These tie into the upbeat expectations for industry volumes and rates in the coming year by carriers responding in the survey and in conversations with TCP partners," said Mikes.
For the second consecutive quarter, almost 90% of the carriers expect rates to increase in the next 12 months compared to the last 12 months. More importantly, this is the first time that no one expected rates to decrease since the question was first asked in the first quarter of 2009.
That compares to less than half that reported rising rates in the first quarter.
"The responses were also notable for the most reporting average rate increases over 15%, the most between 10 and 15% reflecting both breadth and magnitude in a quarter noted for high contract bid activity," said Richard Mikes, TCP partner and survey founder.
The majority of the carriers had at least a 5% increase. Carriers continue to report cost increases including drivers, tires, new regulations, fuel and general expenses. The 1/6 who reported no increases last month may be a reflection of no new contract pricing and a slow down in spot market freight rates for some types of freight and regions impacted by slowdowns.
A higher share of larger carriers (over $25 million in revenue) reported rate increase up to 5% compared to smaller carriers. However, 31% of smaller carriers reported average rate increases over 10% compared to 21% of larger carriers.
"These tie into the upbeat expectations for industry volumes and rates in the coming year by carriers responding in the survey and in conversations with TCP partners," said Mikes.
For the second consecutive quarter, almost 90% of the carriers expect rates to increase in the next 12 months compared to the last 12 months. More importantly, this is the first time that no one expected rates to decrease since the question was first asked in the first quarter of 2009.
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