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Trucking Freight Rates Soar Most In Decades In US

Trucking Frieght

The calculation is derived by dividing the Cass freight-expenditures index by its shipments gauge.

In the US, rising freight costs continue to pose challenges for supply chain, including record number of container ships awaiting berths at ports in Los Angeles and Long Beach. US trucking freight rates jumped in October by more than 36 per cent from a year earlier, the biggest annual increase in data back to the early 1990s, according to the latest figures from Cass Information Systems. The calculation is derived by dividing the Cass freight-expenditures index by its shipments gauge.

Recently, the government report on producer prices showed freight transportation by rail is also costing shippers more. A 7.3 per cent increase in October from the same month last year, the second-large st 12-month advance since 2012. “Supply-chain constraints will take time to unwind as port congestion reaches new highs,’’ according to industry expert. “We expect trucking supply will be constrained beyond historical norms from restocking, economic recovery and limited driver availability.”

With increasing shipping cost, i is predicte that it will have inflation across the US economy and it will be slow to dissipate. Walmart shares dipped by the most since May on a percentage basis after the retail giant said gross margins eased and that it’s bracing more pressure from global transportation snarls.

Trucking Frieght

With increasing shipping cost, i is predicte that it will have inflation across the US economy and it will be slow to dissipate.

The Cass report’s index of freight shipments rose just 0.8 per cent in October, well short of the 35.3 per cent year-over-year surge in May and underscoring the trucking industry’s capacity constraints. Huge numbers of empty and full containers sitting on docks highlight the congestion that ports are striving to remedy. However, there may be a glimmer of hope that the L.A. port is slowly breaking free of its logjam.

The increased deployment of sweeper ships has led to an almost 30 per cent reduction in empties from the dock of the nation’s largest container port, Executive Director Gene Seroka said in a statement. CFO Donald Allan in a conference said that it used to take 30 to 40 days for its tools and storage business to ship products from Asia to the U.S. and Europe.

“So it’s up in the 90-day range at this point for the length of the supply chain, just due to the logistical challenges of getting things in and out of ports, getting them on trucks and eventually to the end state where you want them to land,” he said.

CFO Donald Allan in a conference said that it used to take 30 to 40 days for its tools and storage business to ship products from Asia to the U.S. and Europe.

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