Declining traffic volumes, variability in fuel cost, and increasing labor costs made 2009 a rough ride for freight transportation industries. Road carriers are cutting costs and reducing capacity, while at the same time the industry is seeing consolidation and business closings. The challenges are likely to remain in the months ahead and carriers are expecting to cut back on operations.

Looking Ahead

In the fourth quarter of 2009, insurance premium rates for road transportation at renewal remained consistent, generally ranging from a 5 percent increase to a 10 percent decrease in most lines. For rail transportation, insurance premium rates likely will be flat to a 10 percent increase in 2010. Insurers typically are no longer offering rate decreases or multiyear deals.