Increasing freight costs are affecting earnings at big consumer-goods companies as they try to get products to stores, the Wall Street Journal reported.
The pressure on shipping is expected to extend late into the spring season. Season growth in volumes of produce, food and beverages could also place an additional strain.
Coca-Cola reported that freight costs were up 20 percent from last year in its first quarter. Food companies like Danone and Nestle have both cited rising freight costs in recent earning calls.
Manufacturers and retailers have been trying to book transportation in advance as freight volumes have been expanding. Bad weather, high turnover and the ELD mandate have all led to tighter capacity.
DAT Solutions LLC showed truck capacity loosing up in the slower months. However, there were 6.9 loads to be moved on the spot truck transportation for every available dry van, compared to last March with only 3.2.
According to KeyBanc Capital Markets Inc, some in the industry expect contract rates to increase by as much as 9.2 percent.
