26 Jan 2017
As shippers and truck carriers continue the negotiation of contracts for the new year, many industry analysts predict that conditions moving into 2017 will generate higher costs for carriers, and therefore, higher rates for shippers. The trucking industry experienced an increase in volume during the fourth quarter of 2016. This trend is expected to continue throughout 2017, driving the opportunity to increase contract rates. Any changes in contracts may lead to rating errors during the transition period.
In related news, third party contracts between carriers and shippers are becoming increasingly necessary. The Private Motor Truck Council of Canada (PMTC) is hosting a seminar on January 26, 2017 to discuss third party contracts and mandatory training for entry-level employees. It is a common belief that carriers are not eager to sign contracts with shippers; however, this is incorrect. Carriers are willing to negotiate contracts with repeat customers.
Finally, President Donald Trump has voiced intentions to invest $1 trillion into United States infrastructure during his presidency. He plans to offer tax incentives to private businesses that invest in infrastructure; this will likely result in more toll roads around the country. Trump also introduced a plan to back out of billions of dollars in global warming funding intended for the United Nations. These funds will be used to invest in infrastructure, lessening burdens on tax payers.