Excerpt from: North America Supply Chain and Logistics Strategy
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| December 13, 2007 | | With capacity decreasing and prices increasing on the rails, shippers are moving towards truckload shipments in which there is capacity and favorable rates. | With the limited capacity on the rails, volume is moving back towards truckload shipments where costs are more favorable due to the overcapacity. According to a study performed in the third quarter by Bear Sterns, shippers reallocated 9.6 percent of their volume to truckload shipments from rail. This is a rise from the 6.2 percent movement of shipments in the second quarter. The study shows that shippers believe there is overcapacity in both the truckload and less-than-truckload market. Analysts say that “if economic conditions continue to be ‘uncertain’, LTL pricing could remain low even longer.” With the competitive transportation market it is important to benchmark your rates to ensure that you are receiving the best discount and fuel surcharge. | | |
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