Freight costs are rising and probably faster than most managers think. For example, A Morgan Stanley poll suggested freight rates would go up 10% in the next year, BUT Knight-Swift said its revenue per loaded mile, a key measure of pricing strength, rose 21% year-over-year in Q2.
Company officials said it was getting customers to convert higher spot-market rates into higher contract rates. Add to that the carriers’ rush to buy new Class 8 tractors – July’s record new tractor orders are three times last year’s number (this also has me wondering – “where are all the drivers coming from?” )
Who still thinks the rates are going up 10%?
For a wealth of additional resources and insights, explore our website at https://provisionai.com/ and connect with us on our social media channels for the latest updates and information!