Driver pay increases along with tight capacity are affecting not only transport companies, but also their customers. Retailers and distributors who foot the bill for higher shipping costs face high freight costs.
Among those affected, General Mills is alleging that freight costs have reached their highest rates in 20 years, reducing product margins.
Other purveyors such as Tyson, Hormel, and B&G Foods Inc., have cited lower earnings due to higher freight costs, which would likely be passed on to shoppers.
The spot market ratio of freight loads versus the number of trucks available rose well over 100% between 2017 and 2018. Shippers are under extreme pressure to have their products transported, especially seeing as how capacity on the spot market dropped 8.5% year on year from 2017. For more information, please click here.
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