Fuel surcharges, market forces, and easing truckload growth rates are driving up parcel and LTL rates, says Cowen/AFS’s 2022 Freight Index.

“Fuel surcharges, market forces, and easing truckload growth rates are driving up parcel and LTL rates, says Cowen/AFS’s 2022 Freight Index”

Even without a crystal ball, it’s not surprising that predictions from the April 2022 Cowen/AFS Freight Index center around higher prices. The main takeaway from the Index, a quarterly transportation snapshot with predictive pricing across multiple freight sectors, is that fuel surcharges, together with market forces, will push parcel and LTL rates to record highs, while truckload growth rate is expected to ease.

“Rising fuel prices are no secret,” says Tom Nightingale, CEO of AFS Logistics. “In a tight capacity market, carriers are responding with significantly higher fuel surcharges. Shippers should expect rising rates across the board, as those higher fuel surcharges join the usual suspects like capacity constraints, GRIs, firm pricing policies, and steep accessorial increases to intensify upward pricing pressure.”

Even without a crystal ball, it’s not surprising that predictions from the April 2022 Cowen/AFS Freight Index center around higher prices. The main takeaway from the Index, a quarterly transportation snapshot with predictive pricing across multiple freight sectors, is that fuel surcharges, together with market forces, will push parcel and LTL rates to record highs, while the truckload growth rate is expected to ease.

“Rising fuel prices are no secret,” says Tom Nightingale, CEO of AFS Logistics. “In a tight capacity market, carriers are responding with significantly higher fuel surcharges. Shippers should expect rising rates across the board, as those higher fuel surcharges join the usual suspects like capacity constraints, GRIs, firm pricing policies, and steep accessorial increases to intensify upward pricing pressure.”

 

Source: Inbound Logistics, https://www.inboundlogistics.com/articles/higher-transport-rates-on-the-horizon/, 11 August 2022.

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