Freight market update, 7 November 2022

A Sign of the Times: Shipping Industry Snapshot

Describing global supply chains as “volatile” for the last two years is an understatement. Bottlenecks, inventory imbalances, and soaring freight costs contributed to industries and consumers worldwide experiencing negative ripple effects.

Glimmers of hope are emerging, but anxiety grows over whether freight volumes can maintain traction amid high inflation and economic uncertainty. Shipping costs are pulling back from their historic highs and spot rates for ocean containers dropped 61% year-over-year, according to Freight Index data for the week ending Sept. 23. Slowing demand in the U.S. freed up capacity and loosened the tight market.

The severe backlogs that plagued West Coast ports and stranded billions of dollars of goods for much of 2020 and 2021 are clearing. Some of the problems have shifted to East Coast ports, though, as companies divert their freight. The Port of Savannah in Georgia is working through a containership backlog and reported a downward trend in water-based imports as of late that is expected to continue at least into winter. Still, Savannah’s port has experienced significant growth. The Georgia Ports Authority reports that it had its busiest month ever in August and handled 575,513 20-foot-equivalent container units, an 18.5% year-over-year increase.

Hello Winter: Preparing Freight for Cold Weather

An Alberta clipper, named after the speedy sailing ships that once roamed the oceans, moved through Saskatchewan on Saturday and into Sunday, inundating southern regions with freezing rain and snow and resulting in power outages and road closures.

Environment Canada issued winter storm warnings and special weather alerts Saturday for the winter storm, which was expected to reduce visibility to near zero and drop up to 20 centimeters of snow as it pummeled the province.

Nearly all highways leading in or out of Regina were closed Sunday morning, according to the provincial Highway Hotline. All have reopened except for small sections and Highways 9, 55, and 123 in central Saskatchewan near the Manitoba border.

Conditions are also starting to deteriorate on highways in the Southern Interior of British Columbia.

DriveBC has issued an advisory warning of blowing snow on the Okanagan Connector near Kelowna between the junction of Highway 97 and Pennask Summit, with blowing snow and slippery sections.

There is also fresh snow on the Coquihalla. DriveBC webcams show compact snow along with icy and slushy sections between Kamloops and Hope, BC.

On Highway 3 and Highway, 3A drivers are facing similar snowy and slippery conditions.