“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.
You may also like
The Fully Autonomous Ship Project is entering its second phase: “Testing”
The Fully Autonomous Ship Project is entering its second phase: “Testing”. We are now entering the second phase of MEGURI2040, a project led by the Nippon Foundation, aimed at creating a fully autonomous ship with a clear objective: the implementation of all autonomous navigation technologies developed during phase 1 by 2025. The program will focus on achieving this main goal [...]
24/09/2023
Container shipping market back in 2019
Container shipping market back in 2019. Alan Murphy, CEO and founder of Copenhagen supply chain analyst Sea Intelligence, has warned of widespread service cancellations on major trade lanes across the Pacific Ocean and between Asia and Europe between now and the end of the year. _____________________________________ Murphy was speaking week at the Saudi Maritime Congress held in Damman this week. [...]
24/09/2023
DP World eyes logistics and supply chain expansion in SE Asia
DP World eyes logistics and supply chain expansion in SE Asia. DP World is looking to expand its logistics and supply chain capabilities in the Southeast Asian region building on its existing terminal business. “As we seek to grow our legacy ports & terminals business, we are also working to significantly enhance our capabilities within the fuller spectrum of [...]
24/09/2023