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TRUCKING
WASHINGTON, D.C-Less-than-truckload (LTL) shippers, who enjoyed rock-bottom rates as a result of a competitive price war against financially ailing YRC Worldwide, should be prepared to pay significantly higher rates over the next 12 months, analysts and carrier executives say,
How much higher? At least 4 percent to 5 percent for the contracts coming due the rest of this year, and perhaps doubledigit rate increases in coming years.
"Absolutely...! see double-digit rate increases in the next two years," says Myron P. "Mike" Shevell, chairman of the Shevell Group, which operates Northeast regional carrier New England Motor Freight (NEMF). "If we don't see that type of increase, there will be a substantial number of carriers closing their doors or being unable to invest in their business."
Another top carrier executive, Con-way Freight President John Labrie, says: "We expect rates to continue to go north. The issue is more one of pace-how quickly will rates increase-rather than a question of whether or not that will happen."
David Ross, trucking...