Key facts
- Freight rates are increasing.
- A significant number of carriers have exited the industry.
- Low earnings and new regulations were cited as reasons for carrier exits.
- The contraction in the carrier base is causing upward pressure on shipping costs.
Freight rates are on the rise as a substantial number of carriers have left the industry. This exodus is attributed to a combination of low earnings and the implementation of new regulations. The resulting decrease in the number of available carriers is creating upward pressure on shipping costs.