Carrier rates are continuing to increase. Below are four reasons contributing to the rising costs. Keep reading to find out why costs are going up and what it means for you.
1. Driver Shortages
Simply put, the trucking industry isn’t attracting new drivers. With fewer drivers available there are fewer trucks that can go out each day, meaning the carrier rates are higher. Add on the aging population of trick drivers, and the shortage is getting worse. According to the Bureau of Labor Statistics, the average age of a truck driver is 55 years old.
One suggestion to increase the number of drivers to the trucking industry is to make the industry more attractive. One way to do this is to increase driver pay.
2. Stagnate Fleets
The truck fleets are not growing. Many carriers have stated that they have no plans to increase the size of their fleets in the near future. Again, with smaller fleet sizes there are fewer trucks that can go out each day, meaning the costs will increase.
3. Higher Fuel Costs
With increasing fuel costs the carrier rates raise naturally. To account for the higher costs the carrier will have to increase their rates to stay afloat.
4. Higher Market Rates
As more and more carriers continue to increase their rates, the smaller carriers will have to follow suit. The market rates are increasing because all of the carriers are increasing their rates.
Just by being aware of all the reasons rates can rise puts you ahead of the game. To keep up to date on all trucking industry news, follow our blog.