What You Should Know About Freight Costs In 2022

There were a number of difficulties in logistics during 2020 and 2021. We faced dropping-freight rates, limited storage space, truck shortages, and port congestion. The Suez Canal blockage was one of the freight industry's most significant misfortunes. Now we have entered 2022, and there are new shipping predictions for you to know about.

What is Affecting Freight Costs in 2022?

Even before the blockage in the Suez Canal, ports being congested were a day-to-day reality. As many as a hundred vessels waited for their turn on the U.S. West Coast. This trend is expected to continue in 2022. The capacity in the ports being lowered is due to limited staff, and the ports not adapting to accommodate ultra-large containerships.

The freight industry is experiencing a lot of vacancies in the supply chain from the warehouse managers, to warehouse operatives, to not having enough truck drivers. Along with the vacancies in the supply chain, there are also rising fuel costs. Diesel prices in the U.S. are significantly higher than last year. These prices are predicted to continue increasing. These costs could be passed down to shippers. All these factors mentioned are making it more expensive to ship freight.

When Are Freight Costs Predicted To Go Down?

With the current situation in our country and the rest of the world, importers and exporters want to know when freight costs will go down. Some experts' answer is not yet. However, they feel despite high freight costs and potential delays currently out there, you will see freight rates stabilize even if they are not the ones you experienced in 2019.

Other experts say the logistics industry is experiencing one of the highest constant peaks of increased prices. These increased prices of transporting goods by sea, air, and road will continue to rise in 2022. Companies are being told to brace for more steep increases in logistic and shipping costs.

If you are planning to ship freight in 2022 you can expect to see:

• More shipping spaces open up

• Delays in shipping before the Chinese New Year

• Congestion in the ports

• More containers for hire being available

• Staff shortages

• More ships available

• Fuel prices increasing

If you are planning to ship freight in 2022 these are some factors to consider about the current market.

• Look into different modes and obtain several quotes of transportation so are able to verify you receive the best cost-effective service out there.

• Create a strategy for a worst-case scenario for when you plan to ship freight regarding freight prices and the transit times. You want to be prepared for the unexpected as it is critical for you to be ready should any unforeseen delays, shortage of capacity, and higher costs of shipping rates.

• Check into warehouse options that could minimize the effect of business restraints and lower demand for your business.

• Update yourself on the profitability of your products and learn if a pivot is essential. When you estimate your profit margins, ensure you account for delivery costs.

Learn More About How to Ship Freight

BCAT Logistics is ready to meet all your shipping needs. We have competitive LTL services and rates, provide nationwide trucking services, and can provide expedited services from any port in the United States. One of our most cost-effective shipping is by rail and our service is offered from coast to coast. Contact us today if you are looking to ship freight and have a concern with rising costs and delays. We are here to provide you with the shipping solutions you need.