Price Trends

Pricing across the transportation modes

By ·

Trucking

Long-distance truckload prices increased at a 7.8% pace in the first seven months of 2018 compared to a year ago. LTL followed the same route, up at a 7.4% rate. For the entire U.S. trucking industry, prices were up 6.2%.

Meanwhile, in the 12-month period ending June 2018, operating costs that had fallen also increased 5.2% thanks to a 23.6% surge in fuel costs. Our cost model estimates the industry’s labor costs grew 2.7% and warehousing costs jumped 5.3%.

Parsing price and cost data, we estimate that for every $100 worth of sales, the industry’s pre-tax mark-up now stands at $30.21. Looking ahead, trucking industry prices are forecast to rise 6.3% in 2018 and 3.6% in 2019.

Air

Among U.S.-owned airliners hauling cargo in the belly of planes on scheduled flights, average prices increased at a 1.3% annual pace in the 12 months ending in July. This was the seventh consecutive price hike, cementing a reversal from the 2015-2017 history of falling prices.

For chartered cargo flights, transaction prices also grew at a 5.4% annual pace. Cost inflation, however, has become a serious concern.

In the entire U.S. airline industry, costs are rising at a 6% annual pace as equipment and materials costs increased 8.6% and processing costs (labor and fuels) jumped 20.9%. Our forecast for air cargo on scheduled flights calls for prices to increase 1% this year and 2.2% next year.

Water

When examining prices year-to-date, it appears that a trend shift is emerging in at least one beleaguered waterborne cargo carrier market.

Most notably, reversing a 2.8% price decline in 2017, prices for service on barges and ships plying inland waterways increased 0.2% in the first seven months of 2018 compared to the same period a year ago.

At the same time, deep-sea price tags maintained a consistent 9.3% pace and Great Lakes cargo service prices grew 4.4%. The only divergent trend came from coastal and intercoastal freight where average prices fell 12.6%.

Looking ahead, we forecast average prices industry-wide will be up 4.8% in 2018 and 0.6% in 2019. 

Rail

Price trends for rail services continue to impose ever-greater challenges for shippers.

According to the Bureau of Labor Statistics, the rail transportation industry’s average transaction prices increased 5% in the first seven months of 2018 compared to year-ago prices.

Most of the inflation push came from intermodal rail prices that grew 12.2% this year. That came on top of a 4.3% seven-month price hike in 2017. Carload tags, meanwhile, increased 3.4% in the first seven months of 2018, on par with a 3.4% price hike reported in the first seven months of 2017.

Looking at the industry’s expenses, our cost model shows worker wage inflation currently running at a 2.7% pace and fuel at a 23% pace. 


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.


Article Topics

Cargo · Ports · Pricing · Railroad · Trucking · All Topics
Latest Whitepaper
Six Steps to a Great Technology Stack
Amber Road’s new eBook, Six Steps to a Great Technology Stack, explains how your organization can leverage digital connectivity for multiple benefits.
Download Today!
From the March 2019 Logistics Management Magazine Issue
Shippers are starting to see the incredible advantage that can be gained through the strategic management of e-commerce—especially as logistics professionals move out of their silos and into the C-suite. Industry experts further contend that walls will continue to be torn down before this disruption reaches an advanced and fully evolved stage.
LM Viewpoint on E-commerce Logistics: Time to simplify
Six Warehouse Management Trends to Watch in 2019
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Strategies to Overcome the Labor Shortage and Skills Gap in Distribution
Join logistics industry expert Robert O’Dwyer and technical consultant Shawn O’Brien as they discuss how top companies are developing strategies to do more with less, and identifying technology solutions that will enable managers to overcome their skills gaps. This webinar illustrates how top companies are developing strategies to do more with less and identifying technology solutions that will enable managers to overcome their skills gaps.
Register Today!
EDITORS' PICKS
Ember: Finding the perfect temperature
Inventor of the world’s first temperature-controlled mugs turns to a single third-party logistics...
2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...

2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...
https://cialis-viagra.com.ua/vimax/

Super Kamagra en ligne