Truck freight costs remain above pre-Covid levels

“From Coast to Coast, Supply Chains Get Off to a Rough Start to 2022″ (Bloomberg):

The latest weekly figures from showed the average spot rates in the New England area hit a four-month high, capping its first January increase in data going back to 2014. Truck freight costs eased in other parts of the country but remained well above pre-Covid levels — evidence that capacity shortfalls are snarling supply chains even after the holiday rush and may linger for months.

“We have been bullish on the truckload cycle for quite some time and have not changed our tune,” says Lee Klaskow, a senior logistics analyst with Bloomberg Intelligence. “Rates will moderate into the summer but should remain above pre-pandemic level due to supply constraints.”

According to a Dallas Fed survey released Monday, almost 60% of manufacturers and half of retailers negatively affected by the Covid surge over the past month cited “new or worsened” supply disruptions. That sentiment echoed anonymous commentary in a recent Kansas City Fed survey, a sampling of which is here:

“Lead-times have doubled in some cases, so if it is supposed to take three weeks it is taking six weeks.”

“Purchasing, costs, supply chain are still massive issues … have basically started raising prices on select items to almost extreme levels to intentionally limit or eliminate demand.”

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