Freight Rates Continue to Increase

LOGISTICS MAGAZINE just forecasted that shipping costs would continue to increase throughout most of 2005. Most shippers currently are paying truckload fuel surcharges exceeding 10% of the base rate. Air, Ocean, and Rail rates were stable for first quarter of 2005 but forecasted to continue the rise witnessed in 2004. The most aggressive increases are believed to come from the LTL (Less than full truck load) carriers. During 2004, this segment charged increases over 9% for shipments under 500 pounds. Truck drivers are at the mercy of fuel prices!