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CEO North America > News > Trucking CEOs expect higher prices, disruptions in second half of year

Trucking CEOs expect higher prices, disruptions in second half of year

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Trucking CEOs expect higher prices, disruptions in second half of year
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U.S. trucking CEOs expect to maintain pricing power even with volumes softening in the second half of 2022 as retailers, manufacturers and consumers adjust to disruptions from Covid lockdowns, the Russia-Ukraine war and inflation.

A recent survey of customers by SAIA, a trucker for Starbucks, Home Depot and Lowe’s, found the majority of companies are still working to figure out their next step and what the “new normal” is for their business, according to CEO Fritz Holzgrefe.

“They were talking a lot about continuing to rebuild inventory positions, straightening out their supply chains through the balance of the year, even into the first part of next year,” Holzgrefe said in a note. “Maybe things have slowed a bit, but customers are still continuing to re-sort their supply chain position to more effectively to achieve their goals in their respective businesses.”

The supply chain is improving and past the worst, according to Derek Leathers, CEO of Werner Enterprise, which moves freight for Amazon, Walmart and Target. But, he warned, headwinds for truckers will keep rates well above prepandemic levels for the rest of 2022.

“You’ll see rates hold up for the remainder of the year. Our cost increases are real. Our customers understand that,” Leathers said. “We’re talking large scale successful winning brands like [Amazon and Walmart] and many others that know the reliance on their carrier is a competitive advantage. They want good quality transportation, on time, every time safely. To do that they work with large well capitalized carriers.” 

Tags: LogisticsTrucking industryUS Economy

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