Rising freight rates harm US competitiveness


Turmoil in the US supply chain has led to increasing freight rates, which could be potentially harmful to the country’s global competitiveness.

Rosalyn Wilson, author of the Annual State of Logistics Report was reported by the Journal of Commerce as saying that growing freight rates are driven mainly by a reduction in truck capacity.

As a result, this could increase the amount the logistics and transportation industry contributes to GDP over the next several years.

Wilson went on to say that supply chain difficulties in the US usually stem from US West Coast ports.

Supply chain issues can also occur inland due to railroads finding it challenging to improve services, as well as a shortage of drivers to fill truck seats.

Wilson commented: “The uneven economic recovery has created additional pressure on the network as some regions of the country have increasingly become consumers rather than producers of freight. This trend has led to imbalanced freight lanes, equipment surpluses in areas not generating freight and equipment shortages in areas generating freight.”

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