WITH high shipping demand continuing to outweigh tight capacity across the freight sector, industry experts declared transport operators have the leverage to raise prices when negotiating new prices, hinting that shipping and logistics costs will rise in 2022, reports the Wall Street Journal.
Some trucking companies project double-digit growth in contract rates for 2022.
'I think folks are a little shell-shocked at the moment,' said Council of Supply Chain Management Professionals board member Todd Bulmash. 'They're preparing for the worst.'
Overall, domestic shipping rates for moving goods by road and rail in the US are up 23 per cent this year from 2020, according to Cass Information Systems Inc.
A separate measure that tracks overall logistics prices, including transportation, warehousing, and inventory prices, reached a record in November, up 3.4 per cent from October and a 14 per cent increase year on year.
Said Omaha chief executive Derek Leathers: 'As long as we have underlying inflation across the economy, you're going to see that inflation reflected in the cost of goods and services to include trucking.'
'We don't foresee that until 2023. All of 2022 we view as a capacity-constrained market with inflationary pressure and with significant equipment disruptions,' said Mr Leathers.
Delivery giants FedEx and United Parcel Service (UPS) both declared rates would go up an average of 5.9 per cent next year across most services.
Meanwhile, Xeneta said the spot price to ship an FEU from Shanghai to Los Angeles earlier this month was 75 per cent higher than the same time last year.
Seko Logistics, an Itasca, Illinois-based freight forwarder, declared its contracted rate to ship an FEU from Asia to the US West Coast could double next year between US$6,500 and $7,000.
Said Seko senior vice president Craig Grossgart: 'The carriers are fully in control and the rest of us are sitting on our hands waiting for the carriers to tell us what to do.'
SeaNews Turkey
Some trucking companies project double-digit growth in contract rates for 2022.
'I think folks are a little shell-shocked at the moment,' said Council of Supply Chain Management Professionals board member Todd Bulmash. 'They're preparing for the worst.'
Overall, domestic shipping rates for moving goods by road and rail in the US are up 23 per cent this year from 2020, according to Cass Information Systems Inc.
A separate measure that tracks overall logistics prices, including transportation, warehousing, and inventory prices, reached a record in November, up 3.4 per cent from October and a 14 per cent increase year on year.
Said Omaha chief executive Derek Leathers: 'As long as we have underlying inflation across the economy, you're going to see that inflation reflected in the cost of goods and services to include trucking.'
'We don't foresee that until 2023. All of 2022 we view as a capacity-constrained market with inflationary pressure and with significant equipment disruptions,' said Mr Leathers.
Delivery giants FedEx and United Parcel Service (UPS) both declared rates would go up an average of 5.9 per cent next year across most services.
Meanwhile, Xeneta said the spot price to ship an FEU from Shanghai to Los Angeles earlier this month was 75 per cent higher than the same time last year.
Seko Logistics, an Itasca, Illinois-based freight forwarder, declared its contracted rate to ship an FEU from Asia to the US West Coast could double next year between US$6,500 and $7,000.
Said Seko senior vice president Craig Grossgart: 'The carriers are fully in control and the rest of us are sitting on our hands waiting for the carriers to tell us what to do.'
SeaNews Turkey
