Price Surge is expected for US Shippers

This summer the US economy saw an increase in its freight-generating sector. It was noticed in the increase of shipment volumes and rates. For domestic carriers, it signals that there will be a surge in freight rates, while shippers are left curious about how the cost of transporting goods will become this August. The freight volume has continually increased every July by 1.4 %, however the shipper spending actually increased by 4.5%.  Overall the Cass Freight Index demonstrated that freight is stronger than normal during this time of the year. For truckload volumes it is also noted that it has reached a two-year high. It is also expected that contract pricing will raise as it is time to renegotiate deals from 2016. As capacity tightened early this year for LTL carriers, a general rate increase was implemented by most carriers. Read the full article on Joc.com about the facts that point towards an increase in prices.

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