Wednesday, July 13, 2022

Freight Rates Decline, But Not By Much

Yes, you read that right.  Freight rates decline as demand wavers.  Shippers are trying to reset contract agreements to cut expenses, but costs remain several times higher than before the Covid-19 pandemic.

The reduction in transportation costs is good news for manufacturers and retailers after two years of rapidly rising expenses. It also suggests the contribution of the freight sector to inflation is at least leveling off. But shippers note they are still paying several times more than they did before the Covid-19 pandemic snarled supply chains world-wide.

As one person said:  "We need to be looking at probably less than $10,000 per container to get anywhere close to the levels we were before and be competitive."

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