The big problem for LTL carriers, says analyst firm The Colography Group (www.colography.com), is that shippers have been able to resist any significant rate increases, but LTL carriers are hesitant to cut their prices to gain market share out of fear their yields could slip into negative territory. The message for LTL carriers, according to Colography Group: "It will be exceedingly difficult to price their way to profitability.
| Year | Announced Rate Increase1 | Realized Yield Growth2 | Inflation3 | Actual Net Yield4 |
| 1998 | 5.5% | 3.2% | 1.6% | 1.6% |
| 1999 | 3.9% | -2.9% | 2.2% | -5.1% |
| 2000 | 4.9% | 7.1% | 3.4% | 3.8% |
| 2001 | 5.8% | 0.9% | 2.8% | -1.9% |
| 2002 | 6.4% | 1.9% | 1.6% | 0.4% |
| 2003 | 6.1% | 2.8% | 2.3% | 0.5% |
| 2004 | 6.1% | 4.9% | 2.7% | 2.2% |
| Source: The Colography Group | ||||
1 SMC3
2 Year-over-year growth; The Colography Group
3 inflationdata.com
4 Realized yield minus inflation
Latest from Transportation & Distribution
Latest from Transportation & Distribution
140342494 © Mariusz Burcz | Dreamstime.com
#309307768@Larry Burk|Dreamstime
#53165620@Modfos|Dreamstime
