Domestic Shipping and Logistics
Q1 2022 Market Update
SUMMARY: Costs to move goods across North America also remain far above normal, with ports crushed by inbound volume and truck dwell times for loading expensively extended. Once on the road, rig operators are paying 40% more for fuel, trucking companies can’t acquire new trucks or enough drivers to meet the demand. Expect to see double -digit freight rate increases in 2022, as a result.
One Step Forward, One Step Back: North American ports remain clogged and off-pace Port of Los Angeles & Long Beach instituted 24 / 7 operating hours and fines for loitering containers, steps that reduced the number of ships in-port. Los Angeles Times However, as a consequence, the number of inbound cargo ships forced to idle further off-shore dramatically increased to over 90 vessels awaiting berths to dock. American Shipper Port of Charleston (SC) serviced over 250,000 containers in November 2021, an all-time-record number and the ninth consecutive month of year-over-year record levels for the port that processes a majority of AmerCareRoyal incoming stock product. gCaptain High Energy Costs, Truck Shortages Too Few Drivers: Ground transport of goods across North America continues to cost more and arrive later Fuel prices remain elevated at about 40% above prior year rates. (Coyote Logistics) Trucking companies are struggling to acquire new tractors to meet increased shipping demand due to automotive production shortages caused by semi-conductor scarcity. Freightwaves North American trucking companies are forecasting double- digit freight rate increases for 2022. Wall Street Journal
On-highway diesel fuel prices
Year-over-year change in domestic freight expenditures
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