We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Report: Freight costs far outstripped tonnage in 2011
newsworthy

Report: Freight costs far outstripped tonnage in 2011

January 6, 2012
Mark B. Solomon
No Comments

In a stark reminder of the rate pressures and sub-par growth besetting shippers for the past year, a leading index of shipping activity reported Thursday that freight costs in 2011 jumped 18.8 percent over 2010 levels, while volumes rose a scant 0.7 percent over the same period.

The index, compiled by freight auditing and payment firm Cass Information Systems Inc., measures shipments and expenditures of hundreds of Cass's clients, who collectively spend about $17 billion on transportation services annually. The survey showed a 12-percent fourth-quarter volume decline from the prior quarter, a larger drop than is expected on a seasonal basis. But from November to December alone, expenditures rose by 1.8 percent.

Domestic shippers had few places to hide from rate increases in 2011. Railroads, emboldened by solid demand for carload and intermodal services, raised rates by as much as 15 percent throughout the year. Truck rates rose as well, but not nearly as much as rail rates, the report said. Truck rate increases were driven less by increased demand than by carrier efforts to recoup higher costs for everything from labor to rigs to diesel fuel.

"Continued cost pressures from labor, fuel, and regulations are consuming most of the increased revenues in the trucking industry, leaving little for new capital investments in equipment," according to the report. Truck rates will continue to rise in 2012 as rig capacity is expected to remain tight, the report said.

Roslyn Wilson, author of the report, said that while the year-over-year increases in expenditures are not unprecedented, the gap between the pace of increases in expenditures and volumes could be. The disparity "is explainable by the rate increases that the carriers have been able to sustain even as volume has tapered off," she said.

Transportation Trucking
KEYWORDS Cass Information Systems
  • Related Articles

    Cass freight index shows costs outpacing tonnage

    YRC posts brightening revenue, tonnage picture in Q4 of 2011, but operating losses persist

    Amazon's shipping costs soared in fourth quarter, far exceeding revenue

Marksolomon
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.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

Eb277b97 c776 48f1 98e6 6591f2fc98c2

Are you Considering Using Automated Guided Vehicles or Autonomous Mobile Robots in your Facility?

DCV-TV 4: Viewer Contributed
Flooring is one key component that should be considered for optimal robotic performance on elevated platforms. Gloss, texture, wear, and the condition of the floor can all effect the ability of the robot to run at its peak operating levels. Learn how ResinDek flooring can solve these issues.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing