Breaking

Truckload Carriers Poised for Double-Digit Rate Gains as Capacity Remains Tight

Truckload carriers are positioning for double-digit rate increases in upcoming contract negotiations as capacity constraints persist. The October Logistics Managers' Index showed transportation capacity at 38, marking the 11th consecutive month of contraction, though the pace of decline slowed compared to September. Transportation pricing expanded significantly at a reading of 88, indicating sustained upward pressure. Knight-Swift Transportation, which operates approximately 70% of its truckload fleet under non-dedicated agreements, announced it is targeting at least double-digit rate increases in current annual contract talks. The company's earlier shift toward the spot market resulted in tender rejections running two to three times above industry averages during the third quarter. Regulatory enforcement against noncompliant capacity is reinforcing carrier confidence in the recovery trajectory. Several carriers indicated plans to grow their one-way fleet operations following years of repositioning equipment under dedicated agreements or disposing of it entirely.