/ By TJ China Freight / Cargo • Delivery • Logistic • Moving • sea freight forwarder • Shipping • Transport

Guide to the Rules for Importing Dangerous Goods From China to the USA | 2023

The transportation of dangerous goods always requires high requirements, after all, its chemical nature is more specific and those who do not understand it can easily fall into danger, therefore the United States has specifically enacted the Hazardous Materials Transportation Act.

  1. The Hazardous Materials Transportation Act (HMTA) has been implemented in order to counteract the risks to survival, property and the surrounding environment.

The US Department of Transportation regulates the entry of dangerous goods. According to the U.S. Department of Transportation, hazardous materials destined for the United States or in transit within the United States must be checked for follow-up policies.

– The name of the hazardous material on the consignment note, bill of lading or manifest must be a detailed chemical and technical name, not a generic name.

– Shippers should provide full information on emergency handling of destructive cargo to the US Port Authority in advance through the service, i.e. Dangerous Goods Safety Data Card, or provide emergency handling instructions to the US Department of Transportation.

– The shipper’s emergency telephone number must be stated on the consignment note, bill of lading and manifest. And there must be a person on duty 24 hours a day, regardless of holidays, available to answer enquiries from the US side.

– There are a number of factors that apply to shipping from China to the USA using containers: the maximum weight of a container shipment is 38,000 pounds for 20 feet; the maximum weight for 40 feet is 42,000 pounds. The contents must be well padded and strapped; damaged goods inside need to be marked with visible symptoms and markings. The same applies to the outer surface of the carton.

New York and Los Angeles are ports that export more dangerous goods to the USA. Other towns to visit more often are Chicago and Boston. This is a complex and specialist technique and guidelines or guidance must be followed at every step.

  1. Dangerous goods considerations in road transport

Road transport is inevitable in the whole technique of transporting goods. We all know that it is usually the trucks that carry the goods to their final destination. On this road, there are several key points if you want to ensure the protection of dangerous goods.

  • Loading and unloading. It is important that handlers take care to protect themselves and follow strict handling practices. As I said above, most dangerous goods must be protected from any impact or influence to avoid explosion.
  • Parking. Cars or vehicles carrying dangerous goods are prohibited from being parked in general public places, including colleges and scenic areas.
  • Cleaning. Cars or vans that have been used to transport dangerous goods must be well wiped down and disinfected after unloading.
  • Packaging. Prior to shipment, packaging should be carried out in a safe manner, taking into account the nature of the risk item, the distance to be transported, street conditions, etc. Packaging should be strong and rigid, with clean, standardized, problem-free identifiable markings on the packaging.

It is important to understand the regulations related to the transportation of dangerous goods and to strictly follow the relevant regulations. At the same time, if you hire a good Chinese freight forwarder – tj china freight will get twice the result with half the effort

/ By TJ China Freight / China Freight News • International • Logistic • Shipping

Do You Know What Role H.S. CODE Plays in Freight Transport? | 2022

We all know that there are different regulations for different cargoes, that different countries have their own special customs regulations and different tariffs for different cargoes, so how can you identify these different cargoes quickly and efficiently?

The H.S.CODE system is very useful in shipping operations because it allows customs officials to identify goods faster and easier, thus speeding up the clearance of goods.

Also known as the Harmonised System Code (H.S.CODE), H.S.CODE is the primary tool used by customs officers and duty officials to classify imported goods. Developed by the World Customs Organisation (WCO), H.S.CODE is a multi-purpose international product nomenclature that describes the type of goods being transported. Each H.S.CODE is a six-digit number, and many goods have multiple H.S.CODEs associated with them – for each country of origin or destination, or for each brand or manufacturer, etc.

The H.S.CODE can also be used to provide a common identifier for import and export goods, to identify the category of goods, to manage the classification of goods, to review tariff rates, etc.

How many numbers are there in the H.S.CODE?

The Harmonised System (HS) code is used by border agencies to identify the international trade status of goods and consists of three parts: a 2-digit code, a 4-digit code and a 6-digit code.The first 6 digits of the HS code can be used in conjunction with a country’s local customs identification number to indicate the trade status of the goods.

Are the HS codes different for each country?

Each country can adapt the HTS code with a 2 or 4 digit code without changing the first 6 digits. In other words, the first 6 digits remain the same in each country. However, it is important that countries do not modify the first six digits when adding numbers to more accurately classify and define goods. Countries that are part of the Harmonised System codes must be content to define the basic commodity at the six-digit level, however they can also introduce more detailed descriptions in those six digits

To determine if an HS code is valid you must first find out what type of HS code it is. There are three types: commodity codes, statistical codes and auxiliary codes. Commodity codes are used for raw materials and intermediate products, statistical codes are used for customs only, and auxiliary codes are used for other types of data that do not fall into the other two categories.

After determining which type of HS code it is, you must then look at the first two digits to see if that HS code has a four-digit extension. If the first two digits are 00 to 21, then there is no four-digit extension. If the first two digits are 22 to 47, then it has a four-digit extension. If it has a four-digit extension, you will have to find out what it means by looking at an additional table showing all the possibilities. After you have determined what type of HS code it is, you will have to look at the first two digits to find out if that HS code has a four-digit extension. If the first two digits are 00 to 21, then there is no four-digit extension. If the first two digits are 22 to 47, then there is a four-digit extension. If there is a four-digit extension, you have to find out what it means by looking at the additional table showing all possible extensions.

For more detailed information, please head to the official website. And you can contact us if you are looking for a China freight forwarder to help ship your cargo from or to China for your business. Our professional team is committed to providing the best service with expertise. Sea, Air and rail freight, FCL & LCL, DDP & DDU, Door to Door, Port to Port, just let us know your requirements, and we will provide you with excellent forwarding service at a reasonable price.

/ By tjchinafreight ivy / Shipping

Top 5 ports in Colombia

Top 5 ports in Colombia
Top 5 ports in Colombia

The Republic of Colombia occupies mostly South American territory, but also has some territory in North America. It has some of the finest emeralds and tropical landscapes in the world and is home to some of the most lucrative ports on the Caribbean and Pacific coasts. These ports facilitate trade and commerce with North American and other Pacific nations, as well as their South American counterparts. Colombia is the only country in South America with access to the Pacific and Caribbean trade routes.

Here are the top five ports in Colombia:

Puerto barranquilla

Located near the mouth of the Magdalena River along Colombia's Caribbean coast, the port is one of the most modern liquid bulk facilities in the county. The Palermo Tank Terminal is located on the port premises and has a capacity of 352,000 barrels of refined oil and crude oil.

The terminal has two storage tanks, infrastructure for easy loading and unloading of bulk liquids, and a dock for handling ships. The long-term vision for the port is to hold 2.5 million barrels of liquid substances, from bitumen to petrochemicals and vegetable oils.

Port of cartagena

Locally known as the Port of Cartagena, but officially it is called the Port of Cartagena. It is home to large cruise ships that transport passengers to the city of Cartagena, as well as larger ships carrying general cargo and other import and export cargo. As the fourth largest port in Colombia, it has the capacity to handle 80% of the region's imports and 60% of its exports. The agricultural activity in Colombia's Murcia region is intensive, providing more than 2.5 billion euros worth of fruits and vegetables, most of which pass through this port.

The port has two main terminals, 1.5 miles from each other by sea and 5 kilometers by road. The marinas are Escombreras and Cartagena. Because the port is a deep-water bay and is not affected by wind, currents are weak. It has the Compas terminal in the El Bosque district and the contecar terminal in the Ceballos district. Both handle dry bulk, liquid bulk, containers, breakbulk and some cruise traffic.

Puerto santa marta

The port is operated by the Santa Marta Ports Association and is located on Colombia's Caribbean coast. It consists of seven terminals and provides rail services to facilitate the loading and unloading of goods through the port. It is Colombia's main port on the maritime trade route to the Intra-Atlantic.

The port handles many types of cargo, from palm oil to fuel and carbon as well as grains and containers. One of the port's greatest strengths is its ability to cater to post-Panamax carriers with high cubic cargo. In terms of bulk cargoes from Colombia, the port has the third highest traffic volume.

Puerto tumaco

The Port of Tumaco is located in the city of Tumaco on the Pacific coast. The premises have berthing facilities to handle dry and liquid bulk cargoes passing through the port. It also has a marine terminal that handles the country's exported crude oil. The port of Tumaco is well connected by road and plane to the surrounding area, including the Colombian capital, Bogota and the western city of Cali.

Bananas grown in the Pacific lowlands enter the port for export, but are mainly used as a terminal for crude oil from the Putamayo field, about 160 kilometers southeast of the port. It is also a major fishing port promoting the export of tuna and sardines. The nearby airport makes it a popular port for importing delicate, time-sensitive goods and products as they reach the hinterland faster.

Puerto buenaventura

This is a seaport in front of the Columbia Pacific Ocean. It also happens to be the country's main port of call in the Pacific region. The port, also located in Tumaco, is a veritable "good luck" that has been a boon for the Colombian economy due to the volume of bulk cargoes it handles. The Port of Buenaventura has direct trade routes to Asian markets, which are starting to become as lucrative as the U.S. and European markets.

The port generates 27% of Colombia's total customs revenue. It is able to attract investment and trade because of its proximity to Mexico and Chile, and access to markets in Southeast Asia and beyond. Considering the city was once one of the deadliest due to the widespread cocaine wars in the port, the rebranding of Buenaventura into a growing center of trade and commerce is impressive.

/ By tjchinafreight ivy / Shipping

5 major ports in Peru

5 major ports in Peru
5 major ports in Peru

The Peruvian port system has more than 100 port facilities. These are classified as river, sea and lake ports. Among the major coastal ports, Callao is the most important port for cargo transportation. This is because 70% of cargo handling in Peru takes place at this port.

91% of total exports and 65% of export FOB value are handled by Peruvian ports. Peru borders the Pacific Ocean and has a long west coast. It is not surprising that Peru has numerous ports, as 90% of Peru's exports are shipped by sea.

What are the main ports in Peru?

1. Port of Callao

The Port of Callao is the main port in terms of traffic and storage capacity. Located in Lima, the capital of the central coast, it is 16 meters deep and can carry heavy cargo.

This particular terminal is connected to the industrial area of ​​Lima as well as to the rest of the country. The connection also extends to Jorge Chavez International Airport across the Andes. It is reported that in 2017, container ships berthed at the South Wharf for about 19 hours on average, and at the North Wharf for nearly 23 hours.

2. Shirt port

The port of Paita is the second largest national port in Peru in terms of container traffic, after Callao. Paita, located in Piura in the north of the country, ranks third in terms of total cargo traffic.

Since October 2009, the port has been operated by a Peruvian-Portuguese consortium called Terminales Portuarios Euroandinos SA or TPE. According to reports, by the end of 2016, the operating volume in the port had exceeded 215,000 TEUs.

OSITRAN, Peru's regulator related to investments in public transport infrastructure, said Peru's business was mainly export-oriented. In 2016, nearly 95% of exports were shipped in containers. Among the many export products, there are mainly aquatic biological products such as fish, fish oil and squid, and agricultural and industrial products such as grapes, mangoes, coffee, and bananas.

3. Port of Matalani

The Port of Matarani is located approximately 452 miles south of Callao and serves the southern region of Peru as well as several major cities in Bolivia, namely Santa Cruz, Cochabamba and Oruro.

Back in 1999, the port was awarded to Romero's group company Terminal Internacional del Sur SA (TISUR) for a period of 3 years. This is what has led to the multiplication of cargo to and from Bolivia, as well as increased investment in port infrastructure.

4. Port Talara

The Port of Talara is not only state-owned, it is also operated by the national oil company Petróleos del Perú SA (PETROPERU). Refineries process different products such as motor gasoline, solvents, A-1 turbo, diesel 2, LPG, industrial oils and bitumen.

The Port of Talara serves the oil industry in the Piura and Tumbes regions. Most of the rest of the country sells to them. Shipping takes place through their own loading dock. The tankers were shipped to tankers at Chimbote, Supe, Callao, Eten, Salaverry, Pisco, Mollendo and Ilo terminals.

The Port of Talara entrance channel is in the SE-NW direction with a minimum width of 180 m and a water depth of 10 ⁄ 11 m. It can accommodate tankers up to 210 m long with a maximum draft of 10.36 m and a maximum draft of 10.70 m at the buoy.

The port contains a subsea pipeline for loading and unloading crude oil. There are six supporting mooring buoys as the boats always move towards the southern area.

5. Port of Salaverry

The port of Salaverry is actually an artificial port. It's basically a dock that's constantly exposed to surges and swells. The port contains a 700-meter long breakwater and extension. Although this has decreased, small surges and swells within the port operations area and terminals remain to be resolved.

The port serves Truillo and the neighboring states of Ancash, Lambayeque and Cajamarca. It is managed by Empresa Nacional de Puertos SA (ENAPU). The port contains two sturdy quays for handling general cargo and bulk cargo. This also includes the use of mobile shore loaders for copper concentrates.

/ By tjchinafreight ivy / Shipping

5 major ports in the United Arab Emirates

5 major ports in the United Arab Emirates
5 major ports in the United Arab Emirates

Bordered by Oman and Saudi Arabia, the United Arab Emirates has become a beacon for development and trade on the Arabian Peninsula. It shares waters in the west and north with Qatar and Iran, respectively. The United Arab Emirates is made up of seven states, including Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain. Located in the northern part of the Strait of Hormuz, the country is a strategic country for sea container transportation and trade.

1. Jebel Ali Port (Dubai)

Jebel Ali is the largest man-made port in the world and the largest container port between Singapore and Rotterdam. The port offers the international shipping industry access to a market of 1.5 billion people, as it is the gateway between the Western Hemisphere and the Far East. As one of the most important and modern ports in the region, the port is equipped with state-of-the-art facilities to meet regional and international shipping needs in and around the Arabian Sea.

2. Mina Zayed Port (Abu Dhabi)

The Mina Zayed Port in Abu Dhabi is often just called Zayed Port. It is located at the northeastern end of the city of Abu Dhabi, which is not only the capital of the United Arab Emirates, but also the financial, communication and transportation center of the UAE.

3. Mina Rashid Port (Dubai)

Mina Rashid Port is another man-made port in the Emirate of Dubai, located on the southern coast of the vast Arabian Gulf. The port's location in the heart of the city makes it ideal for passenger operations, although it also handles its fair share of cargo.

The port has received the prestigious ISO-9002 certification as well as the Safety Excellence Certificate from IMS (International Maritime Security). As the only port in the Middle East to receive this recognition and certification, Port Rashid is highly regarded in the global cruise tourism industry. The 2 million-square-meter Mina Rashid Cruise terminal can handle seven of the largest cruise ships simultaneously, each with a capacity of 25,000 passengers. Due to its competence and professionalism, the port has been named the world's leading cruise port in the Middle East at the World Travel Awards for seven consecutive years.

4. Mina Khalid Port (Sharjah)

Also known as Khalid Port, this port is also located in the center of Sharjah. It is the first port in the region to have a container terminal, a free trade terminal and a ro-ro cargo terminal. It pioneered an area that other ports such as Jebel Ali and Zayed Ports followed and expanded upon.

The Port of Mina Khalid has 12 berths for handling general cargo as well as refrigerated, bulk, dry and liquid cargoes. It has two cold storages on the quay side and is also equipped with marine and oil support. The port is undergoing several key construction works that will further modernize its facilities. These include the construction of dhow dock facilities and new berths in the breakwater reclamation area.

5. Khor Fakkhan Port (Sharjah)

The port is also in Sharjah, under the same management as the Mina Khalid port. This is the only natural deep-water harbour in the region, unlike other fully man-made harbours. As one of the main container ports in the United Arab Emirates, this port sees a lot of traffic from the Indian Ocean front. Its location outside the volatile Strait of Hormuz makes this port an obvious choice for large east-west transshipments into the UAE's hinterland.

/ By tjchinafreight ivy / Shipping

5 major ports in Honduras

5 major ports in Honduras
5 major ports in Honduras

Located in Central America, Honduras is known for its natural resources, from coffee to minerals, and its growing textile industry. It is nestled between El Salvador, Guatemala and Nicaragua, with Pacific and Caribbean coastlines to the north and south, respectively.

Honduras has commercial cities, the capital Tegucalpa and San Pedro Sula. Both are industrial and commercial centers that drive the country's economy. But the country's ports may be the biggest reason for the country's economic development. These ports opened up Honduras' trade routes in the Pacific and the Caribbean.

1. Puerto Cortez

Puerto Cortez happens to be the only deep-water port in the whole of Central America. It is also one of the best equipped and largest ports in the region. Originally known as Puerto de Caballos, the port is located in the Caribbean waters of the northern part of the country. Because it has a natural bay, it can handle large ships with a capacity of 10 at a time.

It has a large 4,000-foot docking space and offers 24-hour service, with ships going to Miami seven times a week, New York four times a week, and New Orleans four times a week. Ships from the port travel to the Far East and Europe at least twice a week. The port is a designated safe port for the region, which is why it sees a lot of cargo traffic. That means it can safely ride on the giant ships that cross the Panama Canal.

2. Screen port

This port is also located on the northern coast of the Caribbean Sea. When it officially became the headquarters of the Tela Railway Company in 1914, it became an influential business point. This is a subsidiary of United Fruit Company, which transports bananas from the interior of Honduras to ports for export.

The railway remains intact and still in operation, bringing the banana crop, the region's main export, to the port. It is still called Banana Port because Honduras is one of fifteen countries that provide more than half of the world's banana exports. In 2018, the country exported $522.7 million worth of bananas from the port. Tela also handles coconuts and other agricultural products.

3. Port of Castile

The Port of Castile is actually a small fishing village, but the port facilities are some of the best in the country. They are home to a Honduras naval base and also have a container facility for fresh fruit produced by Dole. It also sits in the middle of African oil palm plantations that have started growing in the region. It will be the main port of call for oil exports

The port also has road access to the country's forestry project and the Aguan Valley Railway, which produces Honduras' famous timber for export.

4. La Ceiba Port

The port of La Ceiba is also located in the waters of the Caribbean Sea, but at the southern end of the coastline. It borders the Gulf of Honduras and is the third largest city in the country. The port developed into a modern port throughout the 19th century, becoming an important shipping port for banana exports. As an agricultural port, it also handles most agricultural products such as citrus fruits, pineapples, coconuts, fish, coffee, meat and wood.

The city hosts its famous carnival every May for the Spanish San Isidro Labrador, attracting more than 500,000 visitors. Ceiba is also considered the entertainment capital of Honduras and the ecotourism capital of Honduras, which means a huge influx of tourists into the city. The port has an excellent cruise terminal that caters for cruise ships that take passengers to various tourist attractions in the country.

5. Port of San Lorenzo

The port is located in the waters of the Pacific Ocean near the Gulf of Fonseca at the southern tip of Honduras. It was built to alleviate the inconvenience of using the old port of Ampara, which had to be dredged to enable ships to moor in the port. It can carry 1.1 million tons of cargo annually. The port of San Lorenzo also serves nearby industrial cities that process products such as rosin, a huge export product for Honduras.

It also handles shipments such as vegetable oils, dairy products and shrimp from local industries and processing plants. The port also has the advantage of being served by the nearby Ampara Airport, which transports goods and products to and from the port.

/ By tjchinafreight ivy / Shipping

Shipping Solutions for Countertop Manufacturers

 

Shipping Solutions for Countertop Manufacturers
Shipping Solutions for Countertop Manufacturers

With more than 1,500 countertop manufacturers in the U.S., the fragmented nature of the market leaves manufacturers without significant resources or leverage when it comes to shipping. Also, the nature of the product, especially the long size, makes shipping unattractive for many carriers, resulting in surcharges and penalty rates.

Countertop Manufacturer Industry Definition

Countertop manufacturing primarily cuts, shapes and finishes kitchen and bathroom countertops. Countertops are made from a variety of materials including: wood, plastic laminate, stone, faux marble, ceramic and concrete. The industry does not include countertops constructed on site by building contractors.

Key Industry Insights:

  • The market size was over $89 billion in 2019 and is expected to grow at an annual rate of approximately 2.8% to over $111 billion by 2027.
  • Material innovations, namely various artificial stone and artificial marble products, and the use of recycled materials such as glass are exploding. Unique, architecturally significant countertops are driving higher prices and profits for manufacturers.
  • Innovations in manufacturing technology, especially 3D printing, have simultaneously produced unique one-off products, reducing manufacturing labor, shortening manufacturing time and increasing profits.
  • Growing interest and investment in refurbishment and remodeling is driving the industry's growth above new construction. New construction is expected to remain strong due to the imbalance between U.S. housing starts and households over the past five years.
  • Durable laminate countertops make up the largest portion of installed countertops in the U.S., and demand will be strong even as engineered and natural stone grow in popularity.
  • Concerns about natural radiation (i.e. radon) from natural granite and its high purchase price will hinder the growth of engineered and farmed products.
  • Residential demand will continue to be the primary use market.

Logistics considerations for countertop manufacturing

Shipping costs are serious business for many countertop manufacturers. Smart, growing countertop manufacturers are using experts to help them gain a competitive advantage in shipping.

Shipping countertops presents some unique challenges:

  • Size - Most countertops are long and narrow. Small package shippers such as UPS and Fedex limit the total size of packages they will handle and charge exorbitant surcharges before rejecting package sizes. For the past few years, less-than-truckload (less-than-truckload) carriers have been using surcharges to block shipments over 8 feet.
  • Packaging - Packaging countertops to withstand shipping environments require proper design and judicious use of packaging materials
  • Weight/Density - Depending on the material, the countertop may or may not be heavy. But because of their size, countertops rarely fit in the cargo configuration most carriers need.
  • The destination-home delivery trend is driving the need for more and more countertop deliveries directly to the installation site. For trucking companies, these mostly "one-off" residential deliveries are less efficient than comprehensive deliveries to stores or warehouses.
  • Damaged - Countertops, especially when packaged improperly, are prone to damage, resulting in unhappy customers, delays and additional costs.
/ By tjchinafreight ivy / Shipping

The busiest seaport in the world

The busiest seaport in the world
The busiest seaport in the world

The busiest seaport in the world

A common question we see in the shipping world is "What is the busiest seaport in the world?" The size and scope of the shipping industry is difficult to understand, which is why working with experts can be so helpful for businesses. At TJ chinafreight, we work with various manufacturing and other companies to meet their transportation and logistics needs.

Currently, the busiest seaport in the world is Shanghai Port (according to Marine Insight). The name is based on the daily container flow through the port, meaning the biggest ports are not always the busiest. The port is located in the Yangtze River and the East China Sea with convenient transportation and consists of a deep sea port and an inland river port. The total area is 1,397.5 square miles! Shanghai beat Singapore to become the world's busiest port with 37.1 million TEUs of cargo in 2019 and is considered the world's fastest-growing economy. About 2,000 container ships depart from Shanghai Port every month.

Learn about the harbour

A seaport is the place of origin, transshipment or arrival of seaborne cargo. Simply put, maritime transport is the movement of goods, raw materials and commodities across the world's oceans and waterways. More than 90% of the world's goods are transported by sea. Without shipping, the world economy would come to a screeching halt—without electronics, manufacturers without raw materials, and store shelves half empty.

Ships are one of the oldest forms of transportation. Today, ships still sail through the former sea trade routes. Interested in learning more? TJ chinafreight would love to hear from you!

/ By tjchinafreight ivy / Shipping

Deliver your product on time

Deliver your product on time
Deliver your product on time

How to help ensure products are delivered on time

1. Understand the reasons for poor on-time performance

There are a variety of factors that can affect shipping times, both within and outside of your control. Everything from road construction to poor planning can lead to delays. As the shipping industry becomes more volatile, external risks increase. That's why it's important to work with a logistics professional to help ensure everything within your control is properly managed. For example, understanding how and when to implement short-term shipping fixes and how to handle the supply chain is critical to staying on track. TJ chinafreight can help!

2. Learn about transportation

There are many ways to ship products from point A to point B. In order to deliver your product on time, it's important to understand what's going on between these points. Truck loading, air freight, trains, cargo ships… the list of options available is extensive. Knowing what to use and when to use it is the key to maximizing efficiency. It is also helpful to understand the strengths and weaknesses of different industries and how they work together.

3. Simplify your supply chain

Improving supply chains involves identifying weaknesses and identifying alternatives. For example, complex supply chains tend to drive higher levels of customization and complexity among manufacturing partners. By diversifying your customer base, you won't be as interdependent as other companies. More successful supply chain tips can be found here.

4. Communicate with your logistics broker

Your LTL shipping partner is here to help you, but they won't be able to help unless they know the full story. Hiring an LTL freight brokerage is a smart move for your shipping needs, especially if you are on the same page as the broker. At TJ chinafreight, we strive to get things right the first time.

Ready to switch? We would love to work with you!

/ By tjchinafreight ivy / Shipping

What to expect from supply chains in 2022

What to expect from supply chains in 2022
What to expect from supply chains in 2022

As far as supply chains are concerned, we are still "in" the midst of a pandemic. Supply chains will continue through 2022 amid the pandemic. The drivers of the surge in demand, the bullwhip effect, labor shortages, political agendas and elections, Fed policy, and oh yes… the rest of the Covid infection are all interconnected. Supply chain expectations in 2022 are a complex issue!

For 2022, I expect:

  • Economic growth will continue, but at a slower pace to 2-3%
  • By 2022, macro-level transport networks will "catch up" and normalize
  • Less-than-truckload carriers are pushing above-average general rate increases while adjusting other tariff rules to discourage certain shipments, such as over-lengths. At the same time, carriers will add trucks and drivers wherever possible, creating a potentially competitive rate environment in 2023 or when the economy slows.
  • FTL operators will see rate peaks before EOY in 2021. Higher contract rates introduced during 2021 will keep prices above multi-year averages, but rolling stock growth is expected to soften by EOY 2022 as new trucks are delivered.
  • Small-package operators, already close to a monopoly, will see astonishing universal rate increases in 2022 after 2021. They are building the last mile network of the future and increasing profits for shareholders.
  • Ocean carriers as a group have been the most disciplined during the pandemic, and they will continue to discipline themselves in 2022 by limiting volumes early and often raising prices. They just made too much money and it wasn't worth it. However, container traffic will normalize by mid-2022, which will allow restrictions to be cleared and return transit times to be more reliable. Don't expect interest rates to return to pre-pandemic levels...forever.