Source: Wall Street Journal
Shippers are paying more to lock in trucking capacity as they anticipate a let-up in the driver shortage will prove temporary, analysts say.
In a survey of 25 trucking companies, Stifel found that prices in contracts that lock in service for up to a year are up by low- to mid-single digit percentage points from a year ago. Shippers are willing to pay higher rates because they want to guarantee trucks will be available to carry their goods should a long-term shortage of drivers get worse, said John Larkin, the Stifel analyst who wrote the report.
Rates in the spot market, where shippers can hire trucks on short notice, have fallen in recent months, as more drivers have been free to haul goods. However, the rising contract rates indicates that availability may not last, Stifel said.