America is on a restocking binge!
“We are just at the beginning of what is likely to be one of the biggest restocking cycles — if not the biggest inventory restocking cycle — in U.S. history”
A recent article in American Shipper delivered good news for the transportation business.
In spite of the pandemic, imports are surging. As a result of soaring demand, retail inventory-to-sales ratios are at record lows, so businesses must restock. “To get those I/S ratios in retail back to normal levels, you’ll need a lot of production and a lot of imports,” said Jefferies Chief Economist Aneta Markowska.
“We are just at the beginning of what is likely to be one of the biggest restocking cycles — if not the biggest inventory restocking cycle — in U.S. history,” Markowska stated. She believes the restocking boom could extend well into 2021.
Demand for consumer goods, she noted, is 6% higher than pre-pandemic levels, and similar trends are taking place in new and resale housing markets.
According to the American Shipper story, the restocking boom has tremendous implications for all facets of the transportation business.
Container-equipment lessors expect strong demand into the first quarter of 2021, and container factories are sold out until February. Capacity for trans-Pacific shipments is already extremely tight, so increased imports will continue to ramp up stateside demand for rail and trucking shipments.
Domestic shippers will likely experience higher rates and possible delays in popular lanes. AJC Logistics can be a vital resource during the difficult months ahead. We can apply our expertise, devotion to customer service, and extensive relationships with carriers to get your goods delivered on time at affordable rates.