Shippers should expect market tensions in 2022

A complete storm of factors such as strong consumer demand, limited production levels and driver availability issues has led to historically tense markets as a result of an ongoing pandemic. Shippers have been worried for months waiting for the market to loosen, and they should expect to wait well until early 2022.

“The balance between supply and demand is undoubtedly leaning towards demand. It looks like it will continue to do so for the rest of the year, as demand outlook is strong and capacity outlook is weak.” Arrive at Logistics Business Intelligence Director David Spencer said.

Demand has proven volatile over the past two years, and unpredictable factors such as hurricanes and wildfires have been linked to pandemic buying practices and a general increase in consumer spending. Retail inventories are currently trending low, and imports continue to flow into the United States near record highs prior to the peak season. All of these factors combine to create a strong outlook for foreseeable future demand.

In terms of capacity, equipment shortages, limited production levels, and driver availability issues contribute to the overall burden. Most of these issues do not have a quick fix. Carriers have been working to overcome the problem of driver shortages long before the coronavirus pandemic spread around the world, but with limited success. In addition, once supply chain issues related to production delays are resolved, it is expected that it will take several months for the backlog of equipment orders to be met at current production levels.

“I believe these issues will continue until the first half of next year,” Spencer said. “If we see equilibrium market conditions in the first half of next year, it must be the result of lower demand. Demand is poised to remain strong and capacity conditions are resolved in time. Given the unlikely scenario of affecting that timeline, the possibilities for balanced conditions are limited. “

Arrive is committed to helping shippers operate in today’s difficult markets by keeping them up to date with the outlook for the situation. This helps shippers make the best possible decisions for their customers and supply chain.

Spencer joins Darlene Wolf, Senior Vice President of Strategic Partners at Arrivive Logistics. “Important indicators” webinar on Tuesday. The duo analyzes current market conditions and provides participants with detailed ideas on what to expect in the coming weeks. The webinar also includes a Q & A segment, allowing guests to interact directly with experts.

“This is an extension of the services we already offer, like us. Free monthly market updates“Spencer said. “Part of that offer is to be more transparent and strategic about how to approach the market.”

The webinar is scheduled for Tuesday from 1:30 pm to 2:00 pm EST. Much of the content is presented with the shipper in mind, but is open to all members of the supply chain.

Click here to register for Arrive’s “Metrics that Matter” webinar. Shippers should expect market tensions in 2022

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