Freight Forecast: Stronger-for-Longer Peak, with a Series of Inflationary Events

ACT Research Reports freight markets remain tight as we head into a clearly historic peak season

Tim Denoyer, ACT Research’s Vice President and Senior Analyst, said, “Freight markets remain tight as we head into a clearly historic peak season with unprecedented containership backlogs, currently about 125 at anchor at North American ports. The chip shortage may have some light at the end of the tunnel, but it continues to slow equipment capacity growth. And the Delta variant, which worsened the chip shortage, could also impact the nascent and gradual recovery in driver supply.”

When asked about the intermodal situation, Denoyer commented, “Network congestion has interrupted freight movement despite strong demand. Due in large part to the 200%+ tariffs on Chinese chassis and subassemblies since late last year [made official in May], chassis production is 35% below where it should be at this point in the cycle.” He concluded, “Amid perhaps the strongest freight demand of all time, the US chassis fleet is shrinking because of these tariffs, which make the situation tough to remedy quickly. We expect intermodal volumes to be impacted through this peak season and beyond.”

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