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 Vancouver backlogs in early December topped 60 ships awaiting docking off-shore. This coincides with similar situations and numbers of inbound cargo ships forced to idle further off-shore at other ports in North America, most dramatically LA / Long Brach where awaiting vessels increased to over 90 in December. American Shipper, Business Insider 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 511 Foodservice 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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