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Truckers Looking to Haul in More Profits | WSJ

Trucking companies are hoping to turn the most robust freight market in a generation into stronger long-term financial footing.

Carriers are raising rates and investing in new equipment as a monthslong rally in transportation demand gives them the upper hand in setting prices with shippers.

Analysts expect strong results across the sector over the next two weeks as fleets report earnings. Capacity remains tight this summer, normally a slack period for freight, and some trucking companies are turning down loads for lack of available trucks.

“We should still see good margin performance from truckers,” said Brad Delco, a transportation analyst with Stephens Inc. “Supply-demand dynamics remain tight, and as a result pricing has been strong, partially offset by the need to raise driver wages.”

June marked the 16th straight month in which prices increased on an annual basis on trucking’s spot market, where shippers book last-minute transportation. That is the longest sustained period of pricing power for truckers since the industry was deregulated in 1980, according to online freight marketplace DAT Solutions LLC.

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Truckers Looking to Haul in More Profits – WSJ.

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