· As carriers cut capacity to meet the lower consumer demand and update schedules for the next two quarters it may become harder to find exact sailings to meet deadlines and delivery location needs. So far carriers have cut capacity by an estimated 10% however these cuts are likely to increase to an overall 25% cut in sailings.
· We are also seeing increases to diesel fuel cost that will likely continue into the winter. This will create increased trucking costs across the board. This is also as trucking capacity has dropped causing some smaller spot rate trucking companies to close their doors as larger trucking companies look to watch costs closely to sustain during this transitional time as they expect trucking rates to continue to decline until an expected market bottoming out in Spring of 2023.
· Air Cargo is also expected to be a turbulent market through 2023 as inflation appears to be a major factor cutting the demand for air shipments from Asia. With so many sectors feeling the pinch in the logistics arena what may lay ahead?
Friday November 4, 2022
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