Book Your Cargo Predicts Supply Chain Breakdown Will Get Worse, Contrary to Industry Hopes
National Drayage Rate Increases 28% Since June 2021, According to Book Your Cargo’s Monthly Drayage Index
WEST LONG BRANCH, N.J., May 31, 2022 (GLOBE NEWSWIRE) -- Book Your Cargo (BYC), an industry-leading premium drayage service provider, today released the June 2022 forecast for the BYC Drayage Spot Market Index, predicting that port disruptions and delays are likely to get worse as the year goes on and that drayage rates will continue to surge.
According to Book Your Cargo’s data, the Drayage Spot Market Index found a 28% rate increase since June 2021. In the third quarter of 2022, the national drayage spot rate is expected to increase 18.3% in comparison to the 7% rate hike seen in the third quarter of 2021 – specifically as anchoring vessels continue to grow outside Shanghai and Ningbo.
“While drayage rates had seemed to be softening, the current chassis and capacity crunch is expected to continue straining the supply chain. Our monthly index predicts that will lead to a steady upward climb in drayage rates across all U.S. regions throughout the rest of 2022,” said Chief Executive Officer of BYC, Nimesh Modi. “With China enforcing full or partial lockdowns in many cities, more vessels are delayed in the ports of Shanghai and Ningbo – most of which will eventually have to make their way to the U.S. Booking cargo transportation sooner will give loads more time to reach their destination and at lower cost.”
BYC’s Forecast for June 2022
June 2022 drayage rates are 28% higher than this time last year.
The most congested ports are: Los Angeles & Long Beach (32 vessels adrift or at anchor), Vancouver (18 vessels adrift or at anchor) and NYC/NJ (17 vessels adrift or at anchor).
Northeast region rates are predicted to rise more than 30% above existing levels with carrier availability two weeks out, low capacity and tight chassis availability.
Southeast region rates are expected to rise more than 30% above existing levels with carrier availability two weeks out, low capacity and tight chassis availability.
Midwest region rates are predicted to rise more than 25% above existing levels with carrier availability one week out, low capacity and tight chassis availability.
Pacific Southwest region rates are predicted to rise more than 25% above existing levels with carrier availability one week out, very low capacity and extremely tight chassis availability.
Pacific Northwest region rates are predicted to rise more than 30% above existing levels with carrier availability two weeks out, very low capacity and extremely tight chassis availability.
The BYC Drayage Spot Market Index tracks data and metrics from BYC customers and partners in real time to produce monthly rates dating back to 2016. These rates accurately predict average load costs and potential delays in the coming months for drayage transportation across various North American regions. For a complete outlook and to see all of BYC’s most recent drayage forecasts, visit bookyourcargo.com/drayage-index.
About Book Your Cargo
Book Your Cargo (BYC) is a dedicated trucking partner for drayage operations across the U.S. for customers around the globe. As a one stop shop, BYC delivers a tailor-made supply chain solution with its nationwide vendor network of over 2400 trucking partners and a proprietary, state-of-the-art Transportation Management System. BYC’s cloud-based portal optimizes the drayage process with instant rate quotes, operational optimization, and service integration, as well as order visibility and real-time milestone updates transmitted through API integrations. The company’s team of drayage experts offers a white-glove service touting a less than 1% track record of service failures. Learn more about BYC, its Digital Drayage Platform, and the BYC Drayage Spot Market Index at bookyourcargo.com.
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