In 2017, carriers are facing some challenges that could mean higher costs for them and higher rates for you. This week, we’re highlighting two of these challenges so that they’re not “gotcha” items when you’re at the negotiating table. We're also offering an opportunity to benchmark your rates.
ONE: Some major insurance companies are getting out of the trucking insurance market. In December, our friends at Stifel hosted an exceptional conference call with a representative from Lockton. It was sobering. Add it all up and the carriers have two choices: either pay higher premiums or adopt some type of self-insurance plan. Click here to see their presentation.
TWO: States are increasing their gas taxes. This is not a federal initiative, but a decision was made by seven individual states to increase their rates effective January 1, 2017. Two states also decreased their rates and it’s likely that over a dozen other states will be debating gas tax changes in the next year.
There are other challenges ahead for carriers. But these and other “gotcha” items mean there's uncertainty in the transportation marketplace, and with uncertainty comes defensive posturing by the carriers. This is why we recommend going to market as early as possible this year and locking in rates at the end of the first quarter or early in the second quarter. A good way to start is to benchmark your rates so that you can understand where you're at relative to the marketplace.
We provide all of this because we’re on your team, we’re here to help, and we’re passionate about seeing you have a great 2017.
