Freight rates are an excellent example of the supply/demand equasion. When rates are taking a dive, as they are now, it means that there's a lot less freight to be moved.
In September of 2021 the average cost for shipping a container from Asia to the U.S. West Coast exceeded $20,000. Last week, the average cost to ship a container from Asia to the U.S. West Coast had declined 84% from a year earlier to $2,720....
That's not all.
...Today’s daily national truckload index rate was $1.78, just $.03 above the breakeven rate for some of the truckload carriers in the market. Note: this is peak season....
Elsewhere it is reported that major national 'contract' carriers are accepting freight-tenders in the spot market at contract rates; that is, they're low-bidding to get the business.
It's fair to say that 2023 will be a challenging year, at least for retailers. That means that it will be a challenging 3 & 4Q for manufacturers.
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