Trucking Companies Boost Prices Amid Capacity Squeeze
By Jennifer Smith | Oct. 25, 2018 1:57 p.m. ET
Trucking companies are flexing their pricing power, pushing retailers and manufacturers to pay more to buy into a strong U.S. economy and adding to inflation pressures in supply chains.
Third-quarter reports from major trucking companies suggest gains are being driven by tight capacity that is pushing shippers to pay more to move goods, even as volume indicates the high demand that flooded truckers with freight earlier in the year is leveling off.
Phoenix-based Knight-Swift Transportation Holdings Inc., KNX -0.89% the largest truckload company in the U.S., said a key measure of its pricing strength—revenue per loaded mile—was up 19.9% at its core trucking operations in the September quarter from the same period in 2017. Revenue at the Knight Trucking segment rose 31%, and operating profit at the unit increased to $56.5 million from $8.6 million.
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