Rising fuel and insurance costs, high driver turnover, and excessive deadhead miles are causing carriers to concentrate on profitability and not their fleet size. Regulatory issues like Hours of Service and pending 2007 engine specifications are creating even less capacity and higher costs. Shippers face more demanding service levels from their customers. All these factors have contributed to higher rates and, when combined with consolidation in the industry, have created a significant shortage in transportation capacity.

WERC and DC Velocity conducted a survey to determine what impact these issues were having on shippers, both from a cost and an operational perspective, and what steps had been taken to mitigate the effects. The returns clearly indicate that most firms are experiencing service deficiencies and higher costs.