Part 2 of our 5 part series
This White Paper will unveil the conditions that led up to the inevitable global shipping crisis, and provide a glimpse into the future of shipping.
The state of global shipping
At the end of 2020, shipping rates on the busiest routes from China to the Eastern and Western seaboards of the United States, were 110% and 208% higher than in 2019. The total delivery of 20-foot containers increased by over 70%. Even air freight, rail and intermodal volumes were seeing spot prices increased by 3-5% annually. These changes in global logistics demand are the highest we have experienced in the 21st century.
Since 2020, the average logistics costs for US companies have increase 1.5-2% annually. For some US companies, the logistics costs alone accounted for as much as 5% of the total product cost. This cost excludes all taxes, duties and other fees charged at the ports of entry or by Customs. In 2021, the transpacific logistics costs have more than doubled over the previous year.
See the full white paper here