Transportation Rates Are On the Rise for All Modes

(Logistics Today – Dave Blanchard)

As the economy slowly inches its way back to something resembling a recovery, the logistics industry is seeing a recovery of its own, one that will see manufacturers take a modest hit to the wallets as rates for motor carriers, railroads and intermodal transportation increase over the next six months.

According to FreightPulse 18, a semi-annual survey of preferred transportation modes conducted by equity research firm Morgan Stanley with Logistics Today, it’s expected that those shippers using rail carriers to move their freight will see a 2.5% hike in their rates through the end of 2010. Even so, rail carriers will see a 2.6% increase in the amount of goods shipped this year. Rail is generally the least expensive mode of domestic transportation, and volume growth is expected to be comparable to the 2003/2004 rebound. […]

• Rail rate increase 2.5%, volume increase 2.6%
• Intermodal rate increase 0.9%, volume increase 2.1%
• Truckload rate increase 0.6%, volume increase 2.7%
• Regional LTL rate increase 0.7%, volume increase 2.1%
• National LTL rate increase 0.7%, volume increase 1.5%

Read more here.

Source: Freight Pulse 18, conducted by Morgan Stanley with Logistics Today. Forecasts reflect expectations for freight rate and volume increases in the second half of 2010.