November 15, 2010

Truck rates, capacity shortages seen as biggest headaches for shippers in 2011

Shippers say rate increases unlikely to be a problem for other modes.

By Mark B. Solomon

A shortage of truckload capacity—and the rate increases that could result from it—will be the biggest challenges facing shippers next year, according to comments heard today at the National Industrial Transportation League's annual meeting in Fort Lauderdale, Fla.

When asked in an informal poll at the conference which of the major transport modes will experience the fiercest pricing pressure next year, 44 percent of the respondents said "truckload," by far the highest percentage of any of the modes. Shipper executives interviewed at the meeting said truck rate increases will be problematic for their businesses next year. The informal poll, as well as off-the-record comments by shippers, did not indicate that rate increases would be a problem for other modes.

Driving those concerns is what many fear will be a reduction in the driver pool once the federal government's new safety initiative, known as CSA 2010, kicks in fully early next year. The program's goal is to identify drivers with spotty safety records and, if necessary, remove them from the road. While many in the transportation industry laud the program's intentions, they worry that it will only aggravate an ongoing shortage of qualified drivers.

Appearing today on a panel of three chief executives, Christopher B. Lofgren, president and CEO of trucking and logistics giant Schneider National Inc., said CSA 2010 could lead to the removal of up to 10 percent of the current driver workforce. Next year's mission "will be about finding drivers," said Lofgren, adding that supply is likely to remain constrained as truckers work to build up driver forces depleted by the regulations.

Lofgren predicted a slow improvement in the economy during 2011, indicating that the absence of a full-blown economic recovery might actually help shippers and truckers mitigate the looming capacity issues brought on by driver shortages.

About the Author

Mark B. Solomon
Executive Editor - News
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

More articles by Mark B. Solomon

Resources Mentioned In This Article

Transportation Videos

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.

Subscribe to DC Velocity

Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Truck rates, capacity shortages seen as biggest headaches for shippers in 2011">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.