Domestic Shipping and Logistics
Q2 2022 Market Update
SUMMARY: Consumer goods demand remains high, filling truck capacities on routes already tight due to driver and equipment scarcities. Diesel fuel spiked when Russia invaded Ukraine. As a result, unprecedented ground freight cost is the norm 511oss North America.
DEMAND FOR GOODS REMAINS HIGH, CONTINUED PORT CONGESTION Ground shipping capacity, particularly Less-than-Truckload will be stressed throughout 2022 due to shortages of trucks and nodes or docks at inland transfer hubs. Capacity limits put further stress on delivery lead-times as shippers must wait longer to ship. CH Robinson US retailers raised their imported products forecast through April, portending extended port congestion on the West and East coasts through the summer months of 2022. US Census Bureau Ports on both North American coasts have yet to clear backlogs of vessels and on-terminal containers that have accumulated in recent months. Queues of dozens of vessels some 90 or more, dot shorelines around all major North American ports. Global Port Tracker, Journal of Commerce Online, Wall Street Journal
US Census Bureau
WAR IN UKRAINE SPIKES FUEL COST, ADDS TO PAIN FOR SHIPPERS
Fuel prices already 40% higher than prior year increased over 30% during the first two weeks of the Russian invasion of Ukraine. MarketWatch Trucking experts expect fleet companies to begin implementing fuel surcharges to shippers, contributing further to the increased cost-of- delivered or landed-goods Supply Chain Dive Until supply chain problems are sorted out with more drivers, trucks and inland storage space, do not expect rapid decline in the backlogs being experienced. Open driver positions in North America now estimated at over 80,000. Hackett Associates Rates for truckload, LTL and specialized transportation increased 25%. Parcel rates rose 14.7%, while prices for warehousing services increased 20.5%, with much of that coming after July 2021 as demand spiked hard due to the ripple effect of supply chain bottlenecks at various U.S. seaports. FreightWaves
14% ($.70 / gallon) jump in diesel fuel prices the week after Russia invaded Ukraine .
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