–Accelerated 24/7 port operations in Long Beach and Los Angeles have contributed to the acceleration of rate prices–
BookYourCargo (BYC) today released the November forecast for the BYC Drayage Spot Market Index, reflecting the impact of the continued port disruptions and market fluctuations in October.
On October 13, the Biden Administration announced that the Port of Los Angeles is expanding to 24/7 operations, adding new off-peak night time shifts and weekend hours. This expansion means the Port of Los Angeles has nearly doubled the hours that cargo will be able to move out of its docks and on highways, contributing to an increase in rates to match demand.
“The recent news of the Port of Los Angeles going 24/7., labor strikes in Europe and shipping disruption spanning from China’s Golden Week have negatively impacted drayage operations and inflated market prices,” said Nimesh Modi, Chief Executive officer of BYC. “The gap between freight demand and transportation supply, especially on the West Coast with the news of those ports going 24/7, has caused a significant rate increase in that region.”
The BYC Drayage Index tracks data and metrics from BYC customers and partners in real time to produce monthly rates dating back to 2016. These rates can be evaluated to accurately predict average load costs and potential delays in the coming months for drayage transportation across various North American regions.
BYC October Outlook
The October 2021 national drayage spot rate is 5.8 percent less than the previous month
Examining the market at a wider scale, October’s 2021 national drayage spot rate was 28 percent more than the national rate in October 2020
The most congested ports as of November 2021 based on vessels at anchorage were Los Angeles, Long Beach, and Savannah
33 percent of imported containers at the Ports of Long Beach and Los Angeles have been at dwell for more than five days, up from 28 percent in August 2021, 21 percent in August 2020 and two percent in January 2020
76 ships sit at anchor and eight ships sit at drift at the ports of Los Angeles and Long Beach
BYC’s Forecast for November
The Northeast region rates are predicted to rise more than 10 percent above existing levels with low capacity and carrier availability is three weeks out
The Midwest region rates are predicted to rise more than 10 percent above existing levels with low capacity and carrier availability is five weeks out
The West region rates are predicted to rise more than 20 percent above existing levels with low capacity and carrier availability is six weeks out
About the Drayage Spot Market Index
The Drayage Spot Market Index functions as an interactive tool that analyzes and compares essential rate data to better plan your future loads. By leveraging past and current market insights, rates are most accurately depicted for heightened visibility.
“Our current forecast predicts that drayage rates will continue to rise into this winter. This means that booking sooner will give your loads more time to get to you and costs will be cheaper if you book sooner, rather than later,” continued Modi.
BYC’s cloud-based Digital Drayage Platform is architected on the latest tech stack featuring AI robotics and machine learning engines. The platform provides seamless integration of API/EDIs with existing third party software platforms, ensuring a smooth transition of information. The platform can also be accessed by mobile devices through an app, where both customers and vendors can easily search and compare rates by location, move type and driver availability, and book loads directly. Upon booking, users are given a request number that can be used to view shipment details and track order status in real-time. The app is available on both the Google Play Store and Apple App Store.
For more information on BYC and to check out the Digital Drayage Platform, visit www.bookyourcargo.com.