2021: Expect more of the same.

The holiday season demonstrated that there’s more need than ever to draw upon seasoned expertise for trucking logistics.

There’s a tug-of-war going on in various trends that impact trucking capacity and rates. 

Backlogs at congested ports delayed cargoes from being delivered to stores in time for holiday shoppers.  Container cargo delays are more frequent and longer, reported Greg Miller, senior maritime editor for American Shipper.

Trends in consumer spending—a key driver of freight shipments—are still positive but less robust than they were a few months ago. Online sales soared on Black Friday, while in-store traffic plunged 52%. Bank of America’s data shows that overall holiday spending ran well above last year’s levels.

However, the pandemic is taking a toll with rapid increases in new cases.  Most Americans didn’t get stimulus payments until January. More people are filing initial unemployment claims, and consumer confidence plunged for two months in a row. 

Refrigerated trucks remain in high demand.

The surge in Covid-19 cases continues to hurt the restaurant industry, so produce and fresh food ordinarily destined for restaurants is being diverted to grocery stores.

The low temperatures needed for coronavirus vaccine distribution will be “an important tailwind for reefer demand,” predicts Tony Mulvey, Research Associate at FreightWaves.

In spite of softened tender volumes in December, truck availability in many routes remained tight as carriers tried to keep their drivers close to home during the holidays.

The big take-away for shippers is clear: Don’t expect the topsy-turvy nature of the trucking business to smooth out in the near future. 

Whatever happens next, you may need to turn on a dime to avoid disruptions in your shipments and deliveries. That’s why it’s essential to have trusted partners in place to rapidly adapt to changing situations. You can count on AJC Logistics to find solutions to your toughest challenges.