We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Shipping forecasts see difficult conditions heading into 2022

Shipping forecasts see difficult conditions heading into 2022

FTR says road freight service will suffer over next several months, while project44 warns of empty shelves for holiday shoppers.

FTR-july-Screen-Shot-2021-09-28-at-1.58.22-PM.png
September 28, 2021
DC Velocity Staff
No Comments

Shippers will likely face months of continued challenges in moving their inventory around the country despite a small improvement in July, according to a measure tracked by the freight transportation forecasting group FTR.

FTR’s Shippers Conditions Index (SCI) for July stayed deep in negative territory at -8.07, showing a small improvement from its level of -12.0 in June, the Bloomington, Indiana-based firm said. While that accomplishment marks the index’s best reading since the fourth quarter of 2020, that growth is so slow that it is forecast to improve into low negative territory heading into 2022.

The SCI number represents the conditions of four variables in the U.S. full-load freight market, including freight demand, freight rates, fleet capacity, and fuel price. Combined into a single figure, the number represents good, optimistic conditions when positive and poor conditions when negative.

According to FTR, the July SCI rose a tick because of a tiny softening of freight volume alongside slightly less negative readings for freight rate and capacity utilization.

 “The Shippers Conditions Index improved slightly in July, but that improvement came off a low base,” Todd Tranausky, FTR’s vice president of rail and intermodal, said in a release. “Conditions are still tough for shippers and will likely remain difficult for some time to come. Strong capacity utilization will support higher rates even as service suffers over the next several months.”

Compounding those hurdles on land, maritime shipping conditions are even worse, as port delays continue to worsen and carriers are charging more than ever to ship containers, according to supply chain visibility provider project44. 

Those problems are caused by the one-two punch of a lack of capacity and pandemic conditions, and carriers are passing associated price increases on to shippers, setting the stage for holiday shortages and inflation, Chicago-based project44 said. “If current circumstances hold, we’re going to see many more empty shelves heading into the holiday shopping season and beyond,” Adam Compain, project44’s senior vice president for data insights, said in a release.

Under those conditions, ocean carriers’ schedule reliability continues to decline, with delays of up to 30 days on the worst-hit China-to-EU routes, and 21.94 days on the worst-hit China-to-U.S. West coast routes, the company said.

And there is no relief in sight: “There’s no quick fix here. Unless demand drops significantly after the holiday rush, this could be a multi-year problem,” Josh Brazil, vice president for data insights, said. “Shippers can no longer absorb the costs. Sustained astronomical shipping rates coupled with a delayed supply are already causing inflationary pressures in the broader economy.”

KEYWORDS FTR Transportation Intelligence project44
  • Related Articles

    Freight capacity pinch will continue into 3rd and 4th quarters, 3PL forecasts

    Market conditions for trucking carriers to remain strong through 2022

    HID Global Forecasts Seven Trends that Will Impact the Security and Identity Industry in 2022

Recent Articles by DC Velocity Staff

Remembering Art Rice, media exec known for his big heart and ability to see the best in everyone

Retailers offer special returns policies to their best customers, Narvar study finds

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing