Shipping rates from China to the U.S. neared all-time highs this week – the shipping cost for a 40-foot container from Shanghai to LA is close to $10,000—representing a 229% increase from one year ago. Globally, a composite index of 8 major trade routes saw a 333% increase from one year ago. Rates are expected to increase.
These higher rates, while beneficial for container shipping lines, are putting pressure on importers in terms of higher costs. Higher costs uneasily absorbed by importers will likely be reflected in higher retail prices, which could result in inflation. Additionally, supply chain constraints due to COVID still hinder economic growth.
Interested in learning more? Read the full article on American Journal of Transportation here.
Heading into the weekend last Friday, FedEx Freight sent a service termination notice to nearly 1,400 LTL customers, to take place on the following Monday. FedEx’s haste decision-making left shippers with no time to make alternative shipping plans. FedEx states the reasoning for this notice relates to congested shipping areas with tight capacity and excessive volumes—citing maintenance of service levels as their main concern.
Shippers were left going into the weekend last Friday with a headache looming – with no one to pick up their shipments and little time to make alternative arrangements, their supply chains continue to be affected. FedEx could have implemented increased price hikes or given a week’s notice before cutting services to these 1,400 customers.
ATTS Logistics takes pride in our excellent customer service and transparent communication. ATTS will handle all the details of your LTL or truckload shipments. Contact us for any of your shipping needs.
For more information on FedEx's termination of service to 1,400 customers, check out FreightWaves article here.
The current coronavirus pandemic is pushing consumers to stockpile supplies, thus increasing the urgency and frequency of shipments for restocking supplies. Due to the surge in retailers and e-commerce distributors' needs to restock, van and reefer spot rates are sharply increasing. Truck wait times at pickup and delivery are getting longer.
Let ATTS Logistics handle your next shipment. Call us today at (847) 726-9580 for a quote or to schedule a shipment.
Truckers continue to deal with new challenges due to coronavirus constraints on truck stops and shipper and receiver facilities while the growing demand for medical supplies and consumer essentials continues. In some states, rest stop restaurant dining rooms are closed and takeout food is the only option. Pennsylvania, one of the major shipping lanes connecting the Midwest and the East Coast, shut-down state operated rest stops. This is posing issues for drivers who go through states like Pennsylvania--where rest is critical to ensure driver safety and supply chain efficiency. Due to these concerns, 13 Pennsylvania rest stops will be reopened today.
Truckers are facing a slew of other constraints including:
Lastly, trucking capacity is tightening due to demand to move shipments from manufacturers to retailers and warehouses, as COVID-19 is pushing consumers to deplete stores of supplies. Since February 29, the average spot market rate is up 6.1%.
With Chinese exports coming almost to a near collapse with record lows in 7 years, we are beginning to see some dry exports building back up with exports to Australia. However we are seeing a change in normal supply and demand across the board for goods and manufacturing pieces coming out of China. At ATTS, we are keeping our eyes on the epidemic in China as this directly impacts our customers. While material shortages and work stoppages both inside and outside China are causing disruption to our customers, we are committed to ensuring as smooth a transition as possible through this time of uncertainty. Once the fear begins to subside and we have a solid timeline for work resumption in China, we anticipate business will be booming as companies try to make up for the Q1 slowdown due to COVID-19.
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