National Drayage Spot Rate Increases 27% Since August 2021, According to Book Your Cargo’s Monthly Drayage Index

Book Your Cargo August 2022 Drayage Index

WEST LONG BRANCH, N.J., Aug. 09, 2022 (GLOBE NEWSWIRE) -- Book Your Cargo, an industry-leading premium drayage service provider, today released the August 2022 forecast for the BYC Drayage Spot Market Index, foreseeing significant capacity crunches and rate hikes in the wake of recent trucker protests at West Coast ports.

According to Book Your Cargo’s data, the Drayage Spot Market Index found a 27% rate increase since August 2021.

Since June 2022, the Midwest Region container drayage rates have seen a 7.4% increase and are expected to remain steady throughout August. In contrast, the Pacific Southwest Region is seeing a 4.8% decrease in container drayage rates from Quarter 3.

However, in recent weeks, truckers at West Coast ports, including Los Angeles, Long Beach and Oakland, have been protesting the California law known as AB5 — which bars companies from classifying them as independent contractors rather than employees. In addition, the International Longshore and Warehouse Union (ILWU) has not yet finalized contracts for longshore workers, and any challenges in reaching agreement could create work stoppage at the terminals.

“We expect chassis and equipment shortages to lead to significant rate increases and limited availability in Q4 for several reasons, including the fact that the AB5 protests are displacing thousands of owner-operators and possible further disruption due to the ILWU negotiations. We are also facing diverted cargo in the Gulf and East Coast ports and a drastic surge in fuel costs leading to rate hikes as shippers are forced to fill their tanks at a much higher price,” said Chief Executive Officer of BYC, Nimesh Modi.

“The predicted crunch will be further exacerbated by the peak holiday season approaching and vessels beginning to travel to the US, now that the lockdowns have been lifted in China. As a result, the sooner importers, exporters, and shippers can secure their drayage carrier, the more likely they will be able to keep logistics costs in control and get cargo delivered in a timely fashion,” Modi added.

BYC’s Forecast for August 2022

• August 2022 drayage spot rates are 27% higher than this time last year.

• The most congested ports are: Los Angeles/Long Beach (64 vessels adrift or at anchor), Savannah (43 vessels adrift or at anchor), and Oakland (26 vessels adrift or at anchor).

• Northeast region rates are predicted to rise more than 17% above this time last year with carrier availability two weeks out, low capacity and tight chassis availability.

• Southeast region rates are expected to rise more than 17% above this time last year with carrier availability two weeks out, low capacity and tight chassis availability.

• Midwest region rates are predicted to rise more than 16% above this time last year with carrier availability one week out, low capacity and tight chassis availability.

• Pacific Southwest region rates are predicted to rise more than 18% above this time last year with carrier availability one week out, very low capacity and extremely tight chassis availability.

• Pacific Northwest region rates are predicted to rise more than 21% above this time last year with carrier availability two weeks out, very low capacity and extremely tight chassis availability.  
  

The BYC Drayage Spot Market Index tracks data and metrics from BYC customers and partners in real time to produce monthly rates dating back to 2016. These rates accurately predict average load costs and potential delays in the coming months for drayage transportation across various North American regions. For a complete outlook and to see all of BYC’s most recent drayage forecasts, visit  https://bookyourcargo.com/drayage-index.

About Book Your Cargo
Book Your Cargo (BYC) is a dedicated trucking partner for drayage operations across the US for customers around the globe. As a one stop shop, BYC delivers a tailor-made supply chain solution with its nationwide vendor network of over 2500 trucking partners and a proprietary, state-of-the-art Transportation Management System. BYC’s cloud-based portal optimizes the drayage process with instant rate quotes, operational optimization, service integration, as well as order visibility, and real-time milestone updates transmitted through API integrations. The company’s team of drayage experts offers a white-glove service touting a less than 1% track record of service failures. Learn more about BYC, its Digital Drayage Platform, and the BYC Drayage Spot Market Index at https://bookyourcargo.com/.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/10dd96f0-4634-4067-b853-38a5e585fe42

CONTACT: Lisa Lazarczyk Tel: 617.838.7327/lisa@lazpr.com