Survey * USA - Finds Continued Improvement in Trucking Capacity, Rate Pressure, for Shippers
Dayton,OH,USA -Supply Chain Digest -1Mar 2007: -- The Story: The quarterly Bear Sterns shippers survey for Q4 2006, released this week, continued to find the same trends established in mid-2006 of a much more favorable environment for shippers, as added capacity in the truckload and less the truckload markets, as well as with ocean carriers, has kept a lid on the strong rate increases seen in the recent past. Only rail rates continue to have strong upward momentum – but the survey finds shippers are reacting by shifting some freight movement from rail to truck, even as rail service improves... Said the report: “We believe survey data support the story of sustained momentum in rail rate increases throughout 2007, driven by ongoing tight rail capacity and expectations for continued strong rail freight demand. For the second consecutive quarter, increasing rail prices were cited as the most significant factor for diverting freight to TL from rail. All our previous surveys had cited poor rail service as the most important factor (now down to second), which we believe speaks to improving or at least more consistent rail service.”...
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