Economic measures coming out of the pandemic appear to be a mixed bag, but truck drivers will have no shortage of work as imports are expected to set new records.
Imports reportedly rose by 2.1 percent to $283.4 billion, setting a new record as consumers purchase foreign automobiles, electronic devices, and clothing, among others. Although oil, diesel, and gasoline prices have risen in 2021, increased import prices are expected to roll in the costs in the coming months. Those measures have pros and cons because the U.S. trade deficit is also expected to hit a new record of $75.7 billion per month, and America’s manufacturing base has gotten off to a slow recovery.
As a result of the shift away from more Made in USA products to imports, shipping ports are quickly becoming overwhelmed. The LA and Long Beach, California, ports anticipate a 10 percent increase in container volume. Long Beach appears to be entering uncharted waters as it already established new container records during the last 11 months.
“We forecast that in 2021, we will have another record-breaking year for the Port of Long Beach. Even as spending on services has increased, we foresee that shippers will need to move high volumes to accommodate imports,” Port of Long Beach executive director Mario Cordero reportedly said. “We have entered a new normal. I don’t see (container volumes) diminishing in the years to come. In fact, it’s only going to increase. We need to seriously consider a 24-7 model as a vision.”
Port officials reportedly plan to transition into a 24-7 operation, and other logistics experts indicate this is just the tip of the spear. According to reports, the National Retail Federation expects retail imports to surge above 12 percent by the end of August, outpacing a record set in May. Although August is traditionally considered a “peak” month for retail imports, worries over potential supply chain disruptions have retailers already placing advanced holiday orders.
“The strain of the continuing economic expansion is putting considerable pressure on the logistics supply chain,” industry expert Ben Hackett reportedly forecast. “We’re seeing a lack of shipping capacity combined with port congestion as vessels line up to discharge goods from both Asia and Europe.”
Although a potential logjam at container ports may be a headache for logistics personnel, it could be a boon for long-haul truck drivers. Every container that arrives in a U.S. port will need a tractor-trailer to haul it to a warehouse, retail outlet, or another distribution point. Truckers can anticipate higher wages, bonuses, and an increased ability to negotiate rates from a position of strength. While hard-working Americans continue to root for the country’s manufacturing base and workers, there will be no shortage of miles to run going forward.
Source: marketwatch.com, freightwaves.com
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