Fleets Expect Rate Hikes As ’06 Freight Demand Grows

any large motor carriers, flush from a successful 2005, said they expected the combination of strong freight demand and a robust economy to push rates up between 4% and 6% this year, marking the third straight year of increases.

The pressure to raise rates is affecting both truckload and less-than-truckload carriers, several executives said.

Steve Russell, chief executive officer at Celadon Group, said he expects general rates to rise between 5% and 6% across the industry in 2006 because of strong freight demand. The company’s average revenue per loaded mile rose to $1.49 last year, a 5.7% increase over 2004.