Yesterday was the beginning of the Lunar New Year. According to some advice passed along by a friend, we need to “be positive and speak auspiciously” if we wish to prosper at this time.
That can be a little difficult when you take a look at current events that are impacting freight costs that are having a significant impact on supply chains in North America.
So we see shippers channeling their “inner Dorothy” and exclaiming: “Lions and tigers and bears, oh my!” Of course, Dorothy uttered these words to convey apprehension and fear. But we are choosing to be positive!
On that front, we are releasing our quarterly Freight Market Update that helps shippers replace their anxiety with knowledge, guidance, and the confidence that comes along with that, even in our current environment. Download it today, so you can benefit from the solid insights it contains about what is happening in the transportation marketplace.
With respect to current market conditions, let's acknowledge those lions and tigers and bears. First up is the trucker convoy up in Canada--over 50 miles long and filled with thousands of truckers who are protesting the VAX mandate rules at the Canadian-United States borders.
Cross-border rates have skyrocketed by as much as 30%, and delays have lengthened as there are now far fewer (a.k.a., thousands!) drivers hauling freight across the borders. And with some large LTL carriers putting an embargo on accepting new cross border-traffic so they can clear out their existing freight backlog, it underscores the need for shippers to have a backup plan.
Next up is the impact of the aforementioned Lunar New Year. The celebration lasts 15 days and always has an impact on global freight. But in this crazy Covid world of ours, and with China set to stage the Winter Olympics, who knows what to expect?
We may see a temporary reduction in the number of containers coming in to U.S. ports. As an article in the Wall Street Journal noted, any reprieve would be welcome as “the queue of ships waiting to enter the ports has remained at about 100 vessels for almost two months” despite efforts to clear the backlog. But what will happen on February 15, when the celebrations are over and demand for containers and capacity could get very, very tight?
Last but not least, we are watching weather related events wreaking havoc on some shipping schedules. Whether it is extreme cold or lots of snow, when carriers see their movement of assets impacted, or when shippers need to move more freight under temperature controlled conditions that send rates for reefer equipment through the roof, it affects a huge number of shippers.
If you want to avoid the impact of these “lions, tigers and bears” moments, give us a call. We’d love to share some insights about how many shippers have benefitted from our Rapid Assessment process. Based on the positive feedback, it has proven to be a valuable exercise that helps companies understand their options, craft effective transportation and supply chain cost savings strategies and help you implement solutions that can produce substantial bottom line savings.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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