Kiplinger: Expect transportation costs to rise

September 9, 2006 by SwizStick  
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With minimal spare capacity in commercial transportation, particularly on trucks and railcars, freight operators will continue to dictate terms to business customers next year—despite a slower rise in demand for shipping services.

Trucking freight rates are likely to increase 4.5% on average in 2007 after a 5.5% gain this year.
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Rail cargo fees will most likely match this year’s 7% advance, straining the budgets of companies that rely on railroads to move truck cargo containers over long distances—especially firms in the machinery, auto parts, steel, scrap metal, chemical and retail sectors.
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Importers and exporters won’t catch any breaks on ocean cargo rates, likely to rise around 5% in 2007, a replay of this year.
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There’s relatively good news ahead in air cargo, where rate hikes will slow to about 4.5% from 6% this year.

Read the whole thing here.

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