The latest release of ACT’s For-Hire Trucking Index indicated that the freight index rose faster than the capacity index for the eleventh consecutive month, allowing the supply-demand balance to climb to the second highest reading ever recorded.
“The wide spread between freight and capacity additions bodes well for continued strength in freight rates into the new year,” says Kenny Vieth, ACT Research’s president and senior analyst. “Clearly, truckers are entering 2018 with an upper hand in negotiations with shippers.”
When respondents were asked what their expectations for 2018 contract rate increases were, the average was 7%. “Contract rates will continue to receive upward pressure as capacity tightens and adjustments are made to ELD mandates,” notes one fleet executive. “Expected increases of 5%-10% are anticipated, with greater increases experienced in spot market situations.”