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Truck, rail pricing power may shift in early 2017

Nov 07, 2016 at 10:01 AM CST

The US economy may be expanding at a faster pace, if the latest quarterly economic data prove true, but that acceleration has yet to spur much, if any, increase in freight rates.

Shippers moving freight throughout the US are enjoying the kind of pricing power they usually only hold during recessions, thanks to a thick layer of excess truck capacity and overstocked inventories, combined with lower fuel costs and fuel surcharges. The strong dollar and skittish consumer demand, at least for items bigger than packages, also play a role.