Prediction from ACT Research: “Peak cargo season is waiting for us”
Leading publishing company ACT Research predicts a very active cargo season that will last longer than usual.
“Markets remain tight as we approach an historic peak season with unprecedented container-trucks delays. Today, about 125 vessels dock in North American ports,” said Tim Denwyer, vice president and senior analyst at ACT Research.
While job growth is slowing to the south of the border in the country, Denwyer noted that employment in a freight transport continues to improve.
“The impact of the pandemic, driver demographic characteristics, job creation in e-commerce and the Drug and Alcohol Clearinghouse are extending the rate cycle, but we expect economic incentives will ultimately outweigh the constraints on a constant offer of drivers,” the vice president said.
When asked about the intermodal situation, Denwyer said: “Despite high demand, network congestion has slowed down the movement of goods. Largely due to the 200% + tariffs on Chinese chassis and assemblies since the end of last year, chassis production is 35% lower than it should be at this stage in the cycle. ”
The vice president concluded by saying, “In contrast to the highest freight demand of all time, the US chassis fleet is shrinking due to these tariffs, making it difficult to fix things quickly.”