Supply chain disruptions and covid pandemic resurgences are pushing drayage fees at the nation’s maritime ports to new highs as shippers continue to see long delays and expensive rates to move their freight, according to an analysis by transportation software provider BookYourCargo.
Myriad disruptions over the past 18 months have contributed to an acceleration of prices, the New Jersey-based firm said in its “BYC Drayage Spot Market Index.” The company says its index is intended to enhance visibility and improve forecast capabilities for shippers, forwarders, and carriers, allowing them to predict average load costs and potential delays in the coming months for drayage transportation across various North American regions.
The most recent data shows that September’s national drayage spot rate was 6% more than the previous month and 32% more than the same month in 2020. And based on vessels at anchorage, the nation’s most congested ports in September were Los Angeles, Long Beach, and Savannah.
Those pain points are not expected to resolve anytime soon. Looking into October, the index forecasts that rates in the Northeast region are predicted to rise 10% above existing levels, while the Midwest region rises 15% and the West region rises 10%.
“The recent tropical storms in the U.S., labor strikes in Europe, and port closures throughout Shanghai and Vietnam continue to negatively impact drayage operations and inflate market rates,” Nimesh Modi, CEO of BYC, said in a release. “We designed the BYC Drayage Spot Market Index to forecast capacity and market trends for elevated industry insight in order to better navigate these ongoing disruptions.”
Introducing BookYourCargo’s new Drayage Index, an internal tool forecasting drayage rates and availability, while analyzing trends within multiple regions. See port congestion and much more with the BYC Drayage Index Forecast. #drayage #supplychainhttps://t.co/4tkJY4bO22 pic.twitter.com/MgNtMfO2Jo— BookYourCargo.com (@Book_Your_Cargo) September 29, 2021