N. A. Rising Transportation Costs LTL – FTL – Ocean
Connecting the world with Alaska & Hawaii
January 2018 Newsletter
Ocean Carriers Announce FSC increases on ALASKA and HAWAII ocean freight:
The Hawaii and Alaska ocean providers have announced increases in FSC rates to both Hawaii and Alaska. Increases to the ocean FSC rates will be effective January 21, 2018. The Hawaii FSC rate will increase from 27.25% to 28.5% with the Alaska ocean FSC rate increasing from 19.5% to 21%. These increased FSC rates will be passed through by SeaWide Express effective January 21st on all ocean shipments.
Rising Costs to Mainland US Transportation Companies:
There is a lot of talk about price increases in the freight industry both on the mainland and offshore US points. Increases presented in 2018 are affecting small package, LTL, Truckload and ocean pricing – with additional impacts to the future fuel rates for all of these types of services.
Businesses in California have been affected by numerous cost increases in 2018 – including businesses in the transportation industry. There are increases in costs from legislation based on the Global Warming Solutions Act/Carb Compliance affecting California transportation companies as they are being required to make changes to their equipment to comply. These statewide increases are driving up costs for California based freight providers. Additionally – all businesses will be affected by legislation decisions in both the minimum wage and health care forums as businesses continue to see increasing costs. These legislative decisions are projected to continue increasing employee costs to businesses over the next five years.
The shortage of drivers in the transportation market is also driving up mainland US freight rates as equipment availability becomes tighter, delays in delivering freight increase and product supply fluctuations. The driver shortage is fueled partly by increasing laws governing operator hours. The implementation of ELD’s by the FMCSA in the U.S. will also increase driver costs for operating. The estimated cost per truck has been noted as anywhere between $500-$2000 per truck. The use of ELD’s also poses monthly fees that drivers must pay out to the ELD providers in order to operate. This cost to fleet owners will be substantial based on their overall fleet sizes. Costs in the truckload market are projected to continue to increase as fleet and independent owner operators look to absorb these increasing costs to their businesses.
Ocean Carriers Announce GRI to ALASKA and HAWAII ocean containers:
Ocean providers in the Alaska and Hawaii ocean markets have announced 2018 GRI’s impacting container pricing. In response to these increased costs for moving ocean containers in both markets, SeaWide Express will be taking a GRI on Hawaii rates effective February 1, 2018. It is our goal to continue to provide our customers with the exceptional service and value that they have grown to expect with SeaWide Express. We value our customers and appreciate your continued business with SeaWide Express as we move into 2018.
You can always check out current FSC rates for mainland diesel rates (EIA Index), ocean FCS rates to Alaska and Hawaii, as well as AK delivery FSC rates on our website at www.seawideexpress.com
Thank you for choosing SeaWide Express as your Alaska and Hawaii LTL Freight partner!