Insurance Costs Seen Affecting LTL Rate Hikes
LTL carriers typically announce rate increases at the end of summer, although they monitor their costs throughout the year. Daniel M. Acker, a vice president with rate bureau SMC3, said that with the exception of insurance, most other cost factors for the industry are fairly calm.
Inflation, which has been mild in recent years, has actually turned to deflation — meaning that prices are falling, according to the federal government’s Consumer Price Index. For example, after peaking at $1.67 a gallon in October 2000, the national diesel price average as measured by the Energy Department has dropped below $1.15 a gallon.
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