In May we reported on the state of the transportation market. In the weeks since we’ve continued to see strains on the market that are making it harder for shippers around the world.
What are the pain points?
Not only are costs for ocean freight continuing to soar, but container availability and vessel space are now limited, adding to the challenges for those who import and export. In addition, delays at major ports due to an influx of containers, shortage of trucks to move containers from the port, and reduced dock staff, are causing disruptions and delays on both ends of the supply chain.
Domestically, we are seeing more and more delays in receiving goods due to truck and driver shortages and a much larger demand on the transportation industry. There are just not enough trucks and drivers to move everything that needs to be moved. In fact, some carriers are looking to the rail systems to supplement their trucking operations due to the driver shortage.
We are also seeing more carriers instituting size limitations at the local terminals in hopes it will allow them to better utilize their truck and dock space and “catch-up” to the demand. We will continue to monitor this situation and provide updates as they become available.
- UP Temporarily Suspends West Coast to Chicago Service (dsv.com)
- China Covid cases causing higher shipping costs, delayed goods (cnbc.com)
- Why is my Less Than Truckload (LTL) freight pricing going up and my service level going down? (virginiabusiness.com)
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