Spot Truckload Rates Drop In US Ports

West-Coast-Ports-Announces-to-Clear-Container-Backlog

Amidst the Post Covid-19 developments in the trucking industry, spot truckload rates have joined in the trend. SHIFEX by Shifl, a container spot freight index, has shown a progressive decline in the spot rate. This decline is expected to crash shipping rates which have been high since the pandemic.

According to Shifl’s data, the shipping rate for a 40-foot container from China to the US is likely to crash. The price for shipping the container is forecasted to fall below $5, 000, which is the lowest price since the post-pandemic spike.

Suspected Cause Of The Drop In Spot Truckload Rates

Although several countries have returned to their normal industrial activities, this is not so in China. The country which has continually suffered from deadlier variants of the virus decided to restrict movements. As a result, different parts of the country are under partial or total lockdown.

Currently the virus is under control however, the trucking industry is experiencing the effects of the lockdown. Consequent to the lockdown, industrial activities within China and the US have dropped notably. This has given the US West coast ports enough time to recover from the port congestion that resulted from the pandemic.

Container Spot Truckload Rate Drops

Shipping a 40` container from China to Los Angeles and Long Beach is predicted to cost an average of $4,900. This projection is to take effect in September 2022. However, it is important to know that this will be a 72% reduction from the price costs of September 2021. As of September 2021, shipping the same size of container costs USD 17,500.

Amidst the spot truckload rates drop, the CEO and founder of Shifl, has put in a word about his thoughts. Shabsie Levy mentioned the fact that the prices were dropping rapidly. He stated that the rates are now lower than they were at the beginning of 2022. He also pointed attention to the fact that consumer demand was very high at the start of the year.

However, during his talk, he also referred to the way things were before the lockdown. He mentioned that the continued spot truckload rates decline possibly shows that the market is tending towards a new normal. But even at that, Shabsie made it clear that the prices are still three times higher than they were before the lockdown.

How US Carriers Deal With The Spot Truckload Rates Decline In The US Ports

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Shabsie Levy predicts that carriers will be forced to renegotiate long-term contracts that were set at high levels. While some top US carriers have been able to manage the current container spot rates drop, negotiations have started for others.

Container Lines mentions that they were able to brush off the 23rd straight week spot freight rates decline. Consequently, they lifted their earnings outlook and profits forecast for 2022. Currently, despite the drop in spot freight rates, contract rates are still 60% higher than in 2021. Based on this, carriers still have the upper hand amidst the continuous price drop.

On the other hand container shipping companies such as Lines, Maersk, and One mentioned that they recorded a volume decline in the second quarter. Consequently, the three companies have now focused on their multi-year contracts. These contracts are currently responsible for 70% of the container moves of these companies.

Let Metti International Help You Ship Your Car

Despite the spot truckload rates decline, Metti International is committed to taking the stress of you on your car shipping. We use only carriers with 95% or higher service ratings. This is to ensure your car is delivered safely, securely and promptly.

Our track record of commitment and excellence has earned us A+ rating by the BBB Torch Award for Ethics four times in a row. We provide top-notch car shipping services.

If you need a trusted and reliable car shipping company, contact Metti International today. You can reach us at 866.620.1776 or request a quote online.

We look forward to serving you!

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Frequently Asked Questions

Most major credit cards, postal money orders and cashiers checks are acceptable forms of payment.

As with most transport services, a deposit is generally required when placing an order. Deposits range from 10-25 % of the total shipping cost. The remaining balance will be due upon delivery.

Most auto transport companies accept cash, certified checks, and postal money orders.

Coast to coast trips usually takes between 10-14 days. Shorter trips ranges from 3-7 days, depending on the actual distance. Some factors may delay a trip, including traffic, weather, and truck breakdowns.

Yes, we request you, or a designated person, be present upon pick up of your vehicle. For your safety and your vehicle’s safety, an inspection is performed and a bill of lading must be signed that serves as proof of delivery.

The easiest way to ship an inoperable vehicle is to let us know when requesting a vehicle transport quote. There will be an additional charge, plus loading and unloading charges to your quote, if we are not informed of the vehicle’s condition prior to quoting.

Auto carriers are not licensed to carry house goods or personal items, these goods and items are not covered by the carriers insurance. Any damage to your vehicle due to household goods shifting or breaking is also not covered. Personal belongings left in the vehicle, are shipped strictly at the owners risk. Carriers will not inventory any belongings left in the vehicle and will assume no responsibility.

Your car is insured for the Blue Book value the entire time it is on the truck. Clearly listed on your Shipping Order, Agreement and Bill of Lading are occurrences not covered. At the time of pick up, a condition report is filled out and signed by both the person turning the car over and the truck driver and you are given a copy.

Upon delivery of your vehicle, this same report is presented. You should compare the condition of the vehicle to the report thoroughly at that time. If you feel damage has occurred to your vehicle during delivery, you must note it on the report before you sign it and the driver leaves. Damage done in transit does not relieve the shipper of paying for transport service performed. Claims will be handled by the vehicle carrier and insurance companies.

Metti International offers door-to-door auto transport service where possible. However, there are instances that we cannot collect/deliver directly to the door due to the size of our auto carrier’s trucks. The size of your street may prohibit direct delivery to your door. Also, some towns and cities do not allow trucks on their residential streets. If the carrier cannot get to your door, he will deliver your vehicle to the next most convenient accessible location, such as the nearest major crossing street, a shopping mall or supermarket.

Please have a no more than 1/4 tank of fuel, remove all personal items from your vehicle and have it washed and cleaned so that the ensuing inspection is easily performed. If it is a convertible, T-top, sunroof, etc. make sure all openings are closed and prepared for changing weather. You can find additional tips on how to prepare your car for transport here.