Offsetting Today’s Rising Transportation Costs

Transportation costs are rising at an aggressive rate. Some of the key contributors include rising cost of diesel fuel, driver shortages and the introduction of CSA (Compliance, Safety, Accountability) regulations. The U.S. Energy Information Administration is projecting diesel fuel to average $4.09 this summer. Carrier bankruptcies and consolidations have reduced capacity, while demand has been increasing by almost 7% year over year, according to industry sources. Additionally, CSA is removing drivers with poor safety records from the pool of available drivers. The transportation industry forecasts this will reduce the pool by 5% to 12%, creating a driver shortage and further restricting supply. This drop in capacity coupled with increased demand and fuel costs will force carriers to raise their rates.

How Can You Offset Rising Transportation Costs?

Sourcing Carriers Effectively

Site Optimization

Intermodal

Consolidating/Deconsolidating Orders

For questions or more information contact Kenco Transportation Management. Learn more about our freight auditing and transportation management services.