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%?