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Review of Increases in TL Rates in Nursery Sector for 2018 Spring Shipments
Commentary of Larry Boyd, National Director – LMTS Nursery Division – Revised Feb 08, 2018
Brief:
As 2018 arrives, the expanding US and world economies are increasing demand for transportation services while, at the same time, transportation capacity is lagging due to inadequate growth of truck numbers nationwide. The long-term driver shortage continues, exaggerated by inadequate driver pay, regulatory ELD mandates and temporary severe weather factors.
Some of the causal factors, like hurricane relief, winter storms and ELD implementation will diminish in a few months. However, other underlying fundamental factors, including diminished truck capacity, ELD regulations that inhibit full utilization of trucks, drivers and the widespread shortage of drivers will take much longer to reach adequate levels to balance the truckload capacity with the demand. US economic growth is forecast to continue trending higher from GDP growth of 2% or less to 4% or more. Freight rates in all sectors, including Nursery, must increase to allow carriers to purchase new trucks and trailers and to increase driver pay and attract new drivers to choose trucking as a career.
