Tuesday, January 31, 2012

2012 Rate Outlook: Flat…for now - Article from Logistics Management

2012 Rate Outlook: Flat…for now - Article from Logistics Management

General outlook in this article is freight rates are stable, economy is going to grow slower than expected (what else is new.. people's appetites are always bigger than they can consume), and low inventory levels are here to stay. The article also says ocean freight lines are looking to increase rates. My belief is with all the new capacity coming on that will be unlikely. They still discuss "driver wages" however I have not seen one carrier who is increasing driver wages so it is hard to claim costs are going up when the carriers apparently refuse to raise that particular cost.

While I agree fuel prices are going up that is not a hard prediction to make. Summary:

1) Rates relatively flat
2) Inventories stay low (don't bet on a massive restocking)
3) Driver wages remain stagnant - carriers appear to support lowering capacity versus refilling at higher cost
4) Fuel prices continue their macro trend up.

That is it for now!

1 comment:

  1. Hmm.. I think they should consider the sizes of each and every cargo that will be delivered. That way, they will have a clue which cargo can be delivered at the same time.

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